QUESTION
What is rate of GST under RCM for `Rent a Cab`. Servie provided by Non body corporate to a Body Corporate?
ANSWER
Facts of the case: GST rate under RCM for `Rent a Cab`. Service provided by Nonbody corporate to a Body Corporate
Law Applicable: Notification no. 11/2017 Central Tax (Rate)
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10. Heading 9966 (Rental services of transport vehicles with operators) |
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(i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. |
2.5 |
Provided that credit of input tax charged on goods and services used in
supplying the service, other than the input tax credit of input service
in the same line of business (i.e. service procured from another service
provider of transporting passengers in a motor vehicle or renting of a
motor vehicle) has not been taken. |
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or |
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6 |
- ] |
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Notification no. 13/2017 Central Tax (Rate)
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15 |
Services provided 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, provided to a body corporate. |
Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient |
Any body corporate located in the taxable territory.
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Interpretation: Vide Notification 29/2019 dated 31.12.2019 Rent a Cab is covered under RCM in case where Any person, other than a body corporate supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 12% to the service recipient.
Conclusion: Vide Notification no. 11/2017 Central Tax (Rate) service recipient is required to pay tax under RCM @ 5%. (Reply dt. 10/03/2021)