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

AI Summary

Tour Operators to Pay GST via Reverse Charge for Unregistered Vehicle Services; 5% or 18% Rate Options Explained A tour operator inquired about the GST implications when using services from unregistered vehicle owners, questioning the reverse charge mechanism (RCM) and input tax credit eligibility. Responses clarified that if a registered entity receives services from an unregistered person, they must pay GST on a reverse charge basis. The applicable tax rate is 5% without input tax credit (ITC) for tour operators, but if opting for ITC, the rate is 18%. Services up to INR 5000 per day from unregistered dealers are exempt from RCM. No ITC is available under the 5% rate for hiring cars or buses.