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Reverse charge RCM rent on rent a cab

05 October 2019

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?

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Darshan Jain (CA) (137 Points)
Replied 05 October 2019

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) (55032 Points)
Replied 06 October 2019

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

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