Reverse charge RCM rent on rent a cab

RCM 2415 views 4 replies

Shashi Prakash Tiwari

39 Points Joined July 2017

Government has issue GST rate notification no 22-2019 , in this notification government has inserted RCM on rent a cab except body corporate @ 5%.My query is that in case of body corporate which has been in buisness of rent a cab, then what rate of GST they have charged @ 18% or 12%, please explain in details?

Replies (4)

Darshan Jain

137 Points Joined September 2008

The body corporate shall be entitled to credit vide provisions of Section 16 r.w.s. 2(98) of the Act. Accordingly the even if the body corporate pays 5% tax, it is sufficient compliance of notification 22/2019 and credit can be claimed for the reverse charge so paid as per the provisions of Section 16. The cab provider was not eligible for ITC but the recipient would be eligible for ITC even if the tax paid is @ 5%.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Dear Shashi

RCM is applicable only if Recepient of Service should be Body Corporate .
And
Services provider is required to charge 5% Without ITC on FC to Recepient who is not a Body Corporate.

Note. : ITC is available to services provider only on the inward supply from same line business