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GST Treatment on Renting of Motor Vehile


Jithendra Chary   20 January 2020

Jithendra Chary

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What is GST Treatment on Renting of Goods Transport Motor Vehicle, Supplier's Registered and Recipient is Body Corporate.

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Pankaj Rawat (GST Practitioner)     21 January 2020

Pankaj Rawat
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RCM is Applicable :

In term of Notification 22/2019 CT (R) , read with Circular 130/49/2019, following conditions prescribed:

1Receptient should be Body corporate.
2. Supplier shall be other than body corporate & opted scheme of 5% GST with limited ITC.

If both the above conditions is fulfilled, RCM is applicable.

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Jithendra Chary   21 January 2020

Jithendra Chary

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If the Rigesterd Supplier Deals withe 5%, 12%, 18% Goods Then What is Treatment, is GST Applicable on RCM or Forward Charge on Renting of Motor Vehicle.

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Pankaj Rawat (GST Practitioner)     22 January 2020

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There is only 2 rates prescribed as Replied by me above ,
1. 5% without ITC >> RCM applicable
2. 12 with ITC >> RCM not applicable.

Note : Any one of above rate is can be excersis by Tax Payer at beginning of FY & need to carry it till end of Fy

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sidhu (Tax consultant)     22 January 2020

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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.

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Jithendra Chary   22 January 2020

Jithendra Chary

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If the Registered Supplier is not a GTA Service Provider, he Deals with Goods Supplying and He Provided Renting of Motor Vehicle to Body Corporate Then What is the Treatment.


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