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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 ..... f 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 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 ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of business Any body corporate located 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 "any person other than a body corporate, paying State tax at the rate of 2.5%" is not free from doub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plier providing the service to a body corporate 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. 1137-F.T. dated 28.06.2017 has been amended vide notification 39-F.T. dated 07.01.2020 to state that RCM shall be applicable on the service by way of renting of any motor vehicle desig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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