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