TaxTMI 
TaxTMI 
A person who is providing Rent a cab service opts for payment of 5% GST (without ITC). Is he liable to pay under reverse charge on the amounts payable to unregistered suppliers(from whom he obtains rent a cab service)? If yes, how much is the rate? is it 18% or 5%? Can he avail input credit of the same?
GST query- Rent a cab service
01 Aug 2017 
3 Replies 
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Reverse charge on cab rental payments applies to e commerce operators; standard operators opting reduced GST cannot claim input tax credit.
A rent a cab provider opting the reduced GST rate without input tax credit cannot claim input credit; reverse charge applies to cab services supplied via e commerce intermediaries, while ordinary operators must discharge any reverse charge liability on unregistered purchases but remain ineligible for input tax credit unless they elect the standard tax regime. (AI Summary)
A rent a cab provider opting the reduced GST rate without input tax credit cannot claim input credit; reverse charge applies to cab services supplied via e commerce intermediaries, while ordinary operators must discharge any reverse charge liability on unregistered purchases but remain ineligible for input tax credit unless they elect the standard tax regime. (AI Summary)