Renting of hire vehicle for official use rate of GST

renting of hire vehicle GST rate and is this service under rcm the service provider is registered
Replies (3)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) rates applicable to the renting of motor vehicles for official use. Two rates are available: 5% GST without Input Tax Credit (ITC) and 12% GST with ITC. Furthermore, it explains the conditions under which Reverse Charge Mechanism (RCM) applies, specifically when the service provider is an individual, has opted for the 5% GST rate, and the recipient is a body corporate.

Service provider may register under GST Act if it is necessary
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.
Yes it is hold good

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