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JCB hire charges tax on Reverse charge mechanism

Suthaniya P (170 Points)

16 December 2024

JCB hire charges tax on Reverse charge mechanism eligible or not.Please notification.

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7582 Points)
Replied 16 December 2024

JCB hire charges are not eligible for the Reverse Charge Mechanism (RCM) under GST.

According to the GST laws, RCM is applicable only on specific services, such as: -

*Goods Transport Agency*: Services provided by a goods transport agency for transportation of goods by road.¹ -

*Renting of Motor Vehicles*: Renting of motor vehicles designed to carry passengers, but only if the supplier is not a body corporate and the recipient is a body corporate. -

*Services by Unregistered Dealers*:

Services provided by unregistered dealers, but only if the recipient is a registered person.² Since JCB hire charges do not fall under these categories, they are not eligible for RCM.

The supplier of JCB hire services would be required to charge GST at the applicable rate, and the recipient would be eligible to claim input tax credit (ITC) on the GST paid.

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