rent a cab

[Ramakrishnan Seshadri]

DEar Sir

We are hires buses and vans for transporting our staff towards pick up and drop to our factory from their point.

Our question what is the gst rate to be charged by the transporters.

Some transporters saying they will charge 18% . what it is correct 5% or 18%

Please clarify.

Thanks & Regards,

S.Ramakrishnan

[Vamsi Krishna]

Pls refer HSN code.9964 which mentions " Transportation of passengers by motorcab where cost of fuel is included in the consideration, then rate of tax is 5% provided the credit of input tax charged on goods and services used in supplying the service has not been taken.

Most of the GTAs normally dont avail credit and the rate of tax shall be 5%.Pls check with your transporter, he might not have got registered under GST even..

[KASTURI SETHI]

Now after the meeting of GST Council held on 5.8.17, Rate of GST is either 5% or 12% not 18%. 5% with ITC and 12% no ITC.

[Rajagopalan Ranganathan]

Sir,

5% rate is without ITC and 12% rate is with ITC.

[ajay gaur]

When u hire taxi then gst rate is 5% and otherwise 18%

[ajay gaur]

GTA is RCM and gta rate is 5 % and ITC depend on ur business type 9 type of business in this list for avail ITC like that agriculture produce medical and military and medical equipment

[RAMESH PRAJAPATI]

GST Rate is 5% on services by way of Transport of passengers, with or without accompanied belongings by- (a) air conditioned contract carriage other than motorcab; (b) air conditioned stage carriage; (c) radio taxi.

But Transport of passengers, with or without accompanied belongings, by non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire is exempted vide Notification No 12/2017-CT (Rate) dated 28.06.2017.

AI Summary

GST rate for passenger transport varies by vehicle category and depends on whether input tax credit is claimed.
GST treatment of hired passenger transport services turns on vehicle category and whether the supplier avails input tax credit: motorcabs, radio taxis and air conditioned contract or stage carriages attract the lower rate when ITC is not claimed, while a higher rate applies where ITC is availed; non airconditioned contract carriage services may be exempt under the relevant notification. Hire parties should verify transporter registration, HSN classification, and ITC status to determine correct tax application.