Reverse Charge - Renting of Motor Vehicle, Goods and Services Tax - GST

[Kaustubh Karandikar]

RCM will be applicable / not applicable on renting of motor vehicle under these situations. 1) XYZ (Non – Body Corporate) taking on hire a vehicle from PQR where PQR is charging GST @ 5% to XYZ. This vehicle is further rented by XYZ to ABC (Body Corporate) where ABC will be required to pay GST under RCM. 2) XYZ (Non – Body Corporate) not registered with GST is renting his owned vehicle to ABC (Body Corporate) where ABC NOT required to pay GST under RCM. 3) XYZ (Non – Body Corporate) is renting the vehicle to ABC (Body Corporate) & charging GST @ 12% where ABC NOT required to pay GST under RCM. Experts views please.