Trasport of passenger from unregistered dealer in case of tour operator

[Pradeep Singh]

We are having business of tour operator we are taking services from unregistered vehicle owner for our client from travelling from one place to another within state and out of state what is the tax liability under gst in case of Reverse charge mechanism for service taken from unregistered vehicle owner and also provide the tax rate .

can i take input tax credit if any tax liability arises after payment of tax under RCM

[DR.MARIAPPAN GOVINDARAJAN]

If you are a registered person under GST and you received supply from an unregistered person, then you are liable to pay tax on reverse charge basis at the rate applicable to GST rate for provider of service. You can take credit on the tax paid on reverse charge.

[Kishan Barai]

UpTo 5000 INR services from URD on per day basis is exempted from RCM under GST Law

[Pradeep Singh]

Thanks for the reply but As a Tour Operator We are Under Tax Rate of 5 percent Without ITC Can we take Input of reverse charge paid on passenger Service will be taken from unregistered car owners as The Word Without ITC is there under out Gst Tax Rate.

As We Are Confusing in the tax rate for the service taken from the unregistered person for booking Please provide the tax rate if it is a car and what if we hire a bus .

[MUKUND THAKKAR]

services tax rate will be 5% and if service taken from unregistered persons for booking car or bus you have to pay 5% under RCM and no tax credit is available to you..

[Kishan Barai]

Totally agree with Mukund Thakkar Sir

[Ganeshan Kalyani]

You have to pay GST for receiving supply of service by hiring car from an unregistered dealer under reverse charge. The tax so paid is eligible as credit. If you would like to take credit then the rate of tax is 18% . And in case if you do not opt to avail input tax credit then the rate of GST is 5%.

AI Summary

Reverse charge liability applies for services from unregistered vehicle owners; tax paid may be creditable depending on chosen GST treatment. Registered tour operators receiving passenger transport services from unregistered vehicle owners must pay GST under the reverse charge mechanism; a de minimis exemption for low value supplies on a per day basis was noted. Tax paid under reverse charge is eligible for input tax credit if the operator opts to claim ITC. The discussion distinguishes between a higher GST rate when ITC is claimed and a lower concessional rate where no ITC is availed.