Pay tax on forward charge and pay tax

If you want to opt for forward charge with Input Tax Credit (ITC) for renting of motor vehicle services, the GST rate you'll need to charge is *12%*.¹ ² This rate applies when you're providing motor vehicle rental services to a body corporate and you're eligible to claim full ITC. Keep in mind that there's another GST rate of *5%* with limited ITC, but that's applicable when you're not eligible to claim full ITC or when you're providing services to a non-body corporate entity.