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

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.