Dear Sir,
As the GST rates are 5% and 12% with ITC,
Now we had finally decided to go with 5% without ITC ( as the ITC is not allowed to Service receiver), request you to kindly advise on the below points.
1. As a service provider can we charge Both the slabs to our clients ( 5% for some clients and 12% for some clients).
2. some of our clients are insisting for 12% and some are insisting for 5%.
Please help in this regard.
Srinee
Rent-a-Cab Operator Advised Against Hybrid GST Rates; Must Declare and Stick to 5% or 12% A rent-a-cab operator sought advice on applying GST rates of 5% and 12% without Input Tax Credit (ITC) for different clients. Respondents advised against using a hybrid approach, noting that 5% GST does not allow ITC on inputs, while 12% GST does. It was highlighted that the GST rate should be consistent throughout the year and that ITC is not available for personal use of rented cabs. Additionally, if fuel costs are borne by the service recipient, an 18% GST might apply. The consensus was to declare the chosen GST rate beforehand and adhere to it. (AI Summary)
TaxTMI 
TaxTMI 
