F. No. 354/189/2019-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax research Unit
North Block, New Delhi,
Dated the _________, 2019
The Principal Chief Commissioners/ Chief Commissioners/
Principal Commissioners/ Commissioner of Central Tax (All) /
The Principal Director Generals/ Director Generals (All)
Subject– Reverse Charge Mechanism (RCM) on renting of motor vehicles -reg.
Suppliers of service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient have an option to pay GST either at 5% with limited ITC (of input services in the same line of business) or 12% with full ITC.
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