RCM on service provided by way of renting of motor vehicle.

1.Services provided by way of renting of a motor vehicle provided to a body corporate. (i.e Propriter, Firm and LLP,etc)

2.Any person other than a body corporate, paying central tax (CGST 2.5%+SGST2.5%) at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business. (The Service Provider is not eligible to take credit on Inputs or Input Services Other than GST Charged by the person in same line of business).

For Example Mr. A, Providing renting of a motor vehicle to a body corporate which is a software company and Providing renting of a motor vehicle to a body corporate ( which is also providing renting of a motor vehicle services) or any Proprietor or Firm or LLP.

First Case:  Body Corporate Would have to pay RCM on Services ( renting of a motor vehicle) provided by Mr.A to  a body corporate which is a software company and Mr.A,  is not eligible to take ITC on Inputs or  Input services related to above inccured by Mr.A. 

In this case Mr.A, Is Eligible to take ITC  on Providing renting of a motor vehicle to a body corporate ( which is also providing renting of a motor vehicle services) or any Proprietor or Firm or LLP. and RCM  is not applicable.

3. Rate of GST under RCM - GST @ 5% (CGST 2.5%+SGST 2.5%)