Renting of motor cab 5%no itc?, Goods and Services Tax - GST

[satbir singh wahi]

Sir

Pls guide what does no itc mean here.

Posts / Replies

[vk agarwal]

it maens , thje motor cab owner will not be entitled to any input tax credit such as credit of GST paid on repair of car etc

[satbir singh wahi]

Sir

If cab operator uses services of other unregistered cab operator then pays under reverse charge @5%, whether itc will be available.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

If the cab operator uses the services from other operators who is not registered under GST, the receiver has to pay RCM @ 5% on the value of services and no ITC eligible on any inputs.

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 10 of "Rate of Tax on Services - CGST / UTGST / SGST / IGST - Goods and Services Tax" renting of Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient. attracts CGST @2.5% subject to the condition that credit of input tax charged on goods and services used in supplying the service has not been taken.

Therefore even if a cab operator procure the service of renting of motor cab from unregistered person and pay 5% tax under RCM he cannot avail input tax credit if he rent out the cab so procured. This is my opinion.

[satbir singh wahi]

Thks all for reply

[MARIAPPAN GOVINDARAJAN]

Shri Rajagopalan gave a clear picture on the query. Thanks sir,