Reverse Charge Mechanism (RCM) on renting of motor vehicles

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..... ber, 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject Reverse Charge Mechanism (RCM) on renting of motor vehicles -reg. Suppliers of service by way of renting of any motor vehicle .....

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..... Sl. No. Category of Supply of Services Supplier of service Recipient of Service (1) (2) (3) (4) 15 .....

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..... rom the perspective of drafting. 4. The matter has been examined. When any service is placed under RCM, the supplier shall not charge any tax from the service recipient as this is the settled procedure in law under RCM. There are only two rates applicable on the service of renting of vehicles, 5% with limited ITC and 12% with full ITC. The only interpretation of the notification entry in .....

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..... e designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient only if the supplier fulfils all the following conditions: (a) is other than a body-corporate; (b) does not issue an invoice charging GST @12% (6% CGST + 6% SGST) from the service recipient; and (c) supplies the service to a body corporate. .....

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