Renting of motor cab 5%no itc?

[satbir singhwahi]

Sir

Pls guide what does no itc mean here.

[vk agarwal]

it maens , thje motor cab owner will not be entitled to any input tax credit such as credit of GST paid on repair of car etc

[satbir singhwahi]

Sir

If cab operator uses services of other unregistered cab operator then pays under reverse charge @5%, whether itc will be available.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

If the cab operator uses the services from other operators who is not registered under GST, the receiver has to pay RCM @ 5% on the value of services and no ITC eligible on any inputs.

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 10 of "Rate of Tax on Services - CGST / UTGST / SGST / IGST - Goods and Services Tax" renting of Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient. attracts CGST @2.5% subject to the condition that credit of input tax charged on goods and services used in supplying the service has not been taken.

Therefore even if a cab operator procure the service of renting of motor cab from unregistered person and pay 5% tax under RCM he cannot avail input tax credit if he rent out the cab so procured. This is my opinion.

[satbir singhwahi]

Thks all for reply

[DR.MARIAPPAN GOVINDARAJAN]

Shri Rajagopalan gave a clear picture on the query. Thanks sir,

AI Summary

No Input Tax Credit for motor cab rental with fuel included: RCM payer cannot claim input tax credit on services. Renting of motor cab services with fuel included is taxable under a concessional rate but only if input tax credit has not been taken on goods or services used to supply that service. When a cab operator pays tax under reverse charge to an unregistered supplier, the operator must pay the tax as recipient but remains ineligible to claim input tax credit if the statutory condition prohibiting credit applies.