Reverse Charge Mechanism (RCM) on renting of motor vehicles

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..... Memo No. 42/GST-2 Panchkula, date the 09-01-2020 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 have an option to pay GST either at 5% with limited ITC (of input .....

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..... (2) (3) (4) 15 Services provided by way of renting of a motor vehicle provided to a body corporate. Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business .....

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..... terpretation of the notification entry in question which is not absurd would be that (i) where the supplier of the service charges GST @ 12% from the service recipient, the service recipient shall not be liable to pay GST under RCM; and, (ii) where the supplier of the service doesn t charge GST @ 12% from the service recipient, the service recipient shall be liable to pay GST under RCM. .....

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..... oted that the present amendment of the notification is merely clarificatory in nature and therefore for the period 01.10.2019 to 30.12.2019 also, clarification given at para 5 above shall apply, as any other interpretation shall render the RCM notification for the said service unworkable for that period which is not permissible in law. 7. Difficulties faced, if any, in implementation of the abo .....

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