GST query- Rent a cab service, Goods and Services Tax - GST

[S VENKAT]

A person who is providing Rent a cab service opts for payment of 5% GST (without ITC). Is he liable to pay under reverse charge on the amounts payable to unregistered suppliers(from whom he obtains rent a cab service)? If yes, how much is the rate? is it 18% or 5%? Can he avail input credit of the same?

Posts / Replies

[Vamsi Krishna]

Only Cab operators falling under E-commerce (Call taxi, Ola,Uber etc) are covered under RCM.

If you are a normal cab operator other than E-commerce and opted for 5%, Input tax credit for your business are not allowed. Even if you make unregistered purcahses under Sec.9(4) the liability has to e discharged however you are not eligible for availing the ITC since you opted 5% tax.

[S VENKAT]

Under such circumstances how much the person should pay under reverse charge 5% or 18% ? Thank you for your reply.

[Vamsi Krishna]

The section provides ITC not available if you opt for 5% which means you will be eligible if you go for 18% tax on your outward supplies..