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Renting of hire vehicle for official use rate of GST

Anup Kumar Sena (CA-IPCC) (143 Points)

11 June 2020

renting of hire vehicle GST rate and is this service under rcm the service provider is registered

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3 Replies

KRISSHNAN KP (4215 Points)
Replied 11 June 2020

Service provider may register under GST Act if it is necessary

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 11 June 2020

Dear Krisshnan
The Services provider is already registered & the Querist is asking Renting of vehicle Rate & whether RCM is applicable ....... So plz reply as per the query being asked.

Dear Anup Kumar :
As per Notification 11/2017 CT , On renting of motor vehicles there are 2 GST rates are prescribed .
1. @ 5% GST without ITC
2. @ 12% GST with ITC

Now come to your 2nd part of Query Whether RCM is applicable .. so In term of Notification 22/2019 CT (R) , The RCM is applicable on Services being provided by way of Renting of Vehicle only if Below all the condition is satisfied :
1. Services provider is Individual (Proprietary firm)
2. Services provider has opted to pay Tax @ 5% without ITC
3. The Recipient is Body corporate.