Reverse Charge Mechanism on vehicle renting applies where supplier does not charge the higher GST rate, shifting tax to recipient. RCM applies to renting of passenger motor vehicles with fuel included when the supplier is other than a body corporate, does not issue an invoice charging the higher GST rate that allows full input tax credit, and the recipient is a body corporate. Suppliers must not charge tax where RCM applies; if the supplier charges the higher GST rate, the recipient is not liable under RCM. The amendment is clarificatory and applied retrospectively for the stated earlier period.
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 vehicle renting applies where supplier does not charge the higher GST rate, shifting tax to recipient.
RCM applies to renting of passenger motor vehicles with fuel included when the supplier is other than a body corporate, does not issue an invoice charging the higher GST rate that allows full input tax credit, and the recipient is a body corporate. Suppliers must not charge tax where RCM applies; if the supplier charges the higher GST rate, the recipient is not liable under RCM. The amendment is clarificatory and applied retrospectively for the stated earlier period.
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