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TMI BlogReverse Charge Mechanism RCM on renting of motor vehiclesX X X X Extracts X X X X X X X X Extracts X X X X ..... hicle 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. 2. The GST Council in its 37th meeting dated 20.09.2019 examined the request to place the supply of renting of motor vehicles under RCM and recomm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the taxable territory. 3. Post issuance of the notification, references have been received stating that when a service is covered by RCM, GST would be paid by the service recipient and not by the supplier. Therefore, the wording of the notification that person other than a body corporate, paying state tax at the rate of 2.5%" is not free from doubt and needs amendment/ clarification fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporate under RCM may still be paying GST @ 5% on the services supplied to other non body corporate clients, to bring in greater clarity, serial No. 15 of the notification No. 13/2017-ST (R) dated 30.06.19 has been amended vide notification No. 29/2019-ST (R) dated 31.12.19 to state that RCM shall be applicable on the service by way of renting of any motor vehicle designed to carry passengers wher ..... X X X X Extracts X X X X X X X X Extracts X X X X
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