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

[Kaustubh Karandikar]

XYZ (Proprietor) is supplying motor vehicle to PQR Ltd. for local travel but not charging GST in his invoice. It is not known to PQR whether the motor vehicle is owned by XYZ or he is taking on hire from a third person. It is also not known to PQR whether the third person is charging 5% GST to XYZ. Under the circumstances, whether PQR Ltd. Is liable to pay GST under reverse charge on the amount paid to XYZ?

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my view he is liable to tax under RCM

[KASTURI SETHI]

RCM is applicable only if condition mentioned against serial no.15 under column no.3 is fulfilled vide Notification no. 22/2019-CT(R) dated 30.9.19 otherwise FCM is applicable.