Reverse Charge Mechanism (RCM) on renting of motor vehicles

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..... Bengaluru-560009, Dated: 31-12-2019 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. GST-34/2019-20 Subject- Reverse Charge Mechanism (RCM) on renting of motor vehicles -reg. Suppliers of service 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 .....

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..... s Supplier of service Recipient of Service (1) (2) (3) (4) 15 Services provided by way of renting of a motor vehicle provided to a body corporate .....

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..... 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 question which is not absurd would be that (i) where the supplier of the service .....

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..... 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% IGST) from the service recipient; and (c) supplies the service to a body corporate. .....

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