Reverse Charge Mechanism on passenger vehicle rentals shifts GST payment to corporate recipients when supplier does not charge full-rate GST. RCM applies to passenger motor vehicle rentals including fuel charges only where the supplier is not a body corporate, does not issue an invoice charging full-rate GST, and supplies to a body corporate; where RCM applies the service recipient pays GST and the supplier must not charge tax, but if the supplier issues an invoice charging full-rate GST the recipient is not liable under RCM. The amendment is clarificatory and applies retrospectively.
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 on passenger vehicle rentals shifts GST payment to corporate recipients when supplier does not charge full-rate GST.
RCM applies to passenger motor vehicle rentals including fuel charges only where the supplier is not a body corporate, does not issue an invoice charging full-rate GST, and supplies to a body corporate; where RCM applies the service recipient pays GST and the supplier must not charge tax, but if the supplier issues an invoice charging full-rate GST the recipient is not liable under RCM. The amendment is clarificatory and applies retrospectively.
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