GST TAX SLAB ON RENT A CAB

GST Rate on Car Rental Services:- If a propritorship firm receives car rental services from a GST unregistered vendor, the GST rate applicable would be 5% (2.5% CGST + 2.5% SGST) or 5 % IGST if it is an interstate transation. This rate is applicable because car rental services fall under the 5% GST slab. 

Regarding RCM, yes, there is liability for RCM in this scenerio. 

GST Rate on Car Rental Services:- If a propritorship firm receives car rental services from a GST unregistered vendor, the GST rate applicable would be 5% (2.5% CGST + 2.5% SGST) or 5 % IGST if it is an interstate transation. This rate is applicable because car rental services fall under the 5% GST slab. 

Regarding RCM, yes, there is liability for RCM in this scenerio. 

In that case what will be TDS deducted 194I or 194C ?

In that case what will be TDS deducted 194I or 194C ?

What happen if the service receive from other than propritorship firm?

The firm’s outward GST rate depends on the service it supplies—not on the rate, if any, that would have applied to the unregistered vendor. If the proprietorship hires a car and then supplies passenger transport/rent-a-cab service to its client, the applicable rate generally depends on the vehicle, fuel, whether fuel is included, and the rate/ITC option chosen under the relevant entry. Common rent-a-cab options are 5% without ITC or 12% with ITC, subject to the specific conditions; confirm the classification and current rate from the actual contract and service.

• For a car rental received from an unregistered vendor, RCM does not apply merely because the vendor is unregistered. The notified RCM entry for renting a motor vehicle is limited to specified cases involving a body corporate supplier and a business entity recipient, with prescribed rate/ITC conditions; an unregistered supplier does not meet that supplier condition.
• The proprietorship must charge GST on its taxable outward supply even if its own vendor charged no GST, assuming it is GST-registered and no exemption applies. Whether the client is a corporate or an individual does not by itself change the rate.
• If the firm merely arranges the rental as an agent rather than supplying the transport service itself, the GST treatment may differ; the agreement, invoice and control over the service matter.

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