Reverse Charge Mechanism applies where non corporate vehicle lessors do not charge tax, making corporate recipients GST-liable. RCM applies to renting of passenger motor vehicles where fuel is included; the supplier shall not charge tax when service is under Reverse Charge Mechanism. The recipient is liable under RCM if the supplier does not issue an invoice charging the higher-rate GST. The notification was amended to clarify that RCM applies only where the supplier is non-corporate, does not charge the higher-rate, and supplies to a body corporate.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reverse Charge Mechanism applies where non corporate vehicle lessors do not charge tax, making corporate recipients GST-liable.
RCM applies to renting of passenger motor vehicles where fuel is included; the supplier shall not charge tax when service is under Reverse Charge Mechanism. The recipient is liable under RCM if the supplier does not issue an invoice charging the higher-rate GST. The notification was amended to clarify that RCM applies only where the supplier is non-corporate, does not charge the higher-rate, and supplies to a body corporate.
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