GST Treatment on Renting of Motor Vehile
Jithendra Chary (58 Points)
20 January 2020Jithendra Chary (58 Points)
20 January 2020
Pankaj Rawat
(GST Practitioner)
(55025 Points)
Replied 21 January 2020
Jithendra Chary
(58 Points)
Replied 21 January 2020
Pankaj Rawat
(GST Practitioner)
(55025 Points)
Replied 22 January 2020
sidhu
(Tax consultant)
(70 Points)
Replied 22 January 2020
Hi Jithendra Chary,
As mentioned by Pankaj sir above, the rate of tax to be adopted by the supplier of 'renting of motor vehicles' services shall either be 5% or 12%, irrespective of the recipient goods (5%/12%/18%/other)
Example 1: In case A an individual (supplier of renting services) charges Company B Ltd (being recipient of services). A opts to charge 12% rate of GST, then RCM is not applicable.
Example 2: In case A an individual (supplier of renting services) charges Company B Ltd (being recipient of services). A opts not to charge GST in the bill, then B ltd would be mandated to pay RCM @ 5%.
However, in the best interest the exporting Companies may push the small GTA service providers to opt for 5% rate and not to charge GST in the bill to save their working capital.
Hope the above clarifies.
Jithendra Chary
(58 Points)
Replied 22 January 2020