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Hiring or renting of Motor vehicle: RCM applicablity

Hemant Chugh (1 Points)

06 January 2020

Is RCM applicable on hiring or renting of motor vehicles?

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2 Replies

Pankaj Rawat (GST Practitioner) (55062 Points)
Replied 07 January 2020

In term of Notification 22/2019 , yes RCM is applicable only hiring of motor vehicles, but subject following conditions:

1Supplier of Service provider is Non corporate body
2. Supplier has opted scheme of 5% with limited ITC
3. Receptient is Body corporate.

Hence RCM is applicable when all the above conditions are fulfills

rajan (accountancy) (30 Points)
Replied 16 December 2024

Currently we (Body corporate) are paying RCM on 5% on vehicle hiring. Now supplier wants to opt forward gst. If he charges 12% then our cost will be increased as ITC is not available for us. Shall we allow them to charges 12%?