Reverse Charge

[Vivek anandhan]

Dear Experts

We are availing cab service from unregistered person, whether we need to pay GST under revers charge.

Also we are paying GST under reverse charge for availing service of cab service (Radio taxi)

Regards

Vivekanandhan

AI Summary

Clarification on GST Reverse Charge for Cab Services: Not Required for Personal Use or Payments Under 5000. A forum participant inquired about the applicability of the Goods and Services Tax (GST) under the reverse charge mechanism (RCM) for availing cab services from an unregistered person. Experts clarified that rent-a-cab services are not typically subject to RCM unless they are for business purposes. If the total payment to unregistered sources is under 5000, GST is not required. A manufacturer confirmed their understanding of paying GST under RCM for such services, which was validated by another expert. A query about claiming RCM as Input Tax Credit (ITC) in future returns was also raised.