Hello everyone,
I am new to this forum, I would like to get some clarity on The GST regime.
We are Rent a cab services, can we bill under the 5% composite plan and the 12% for input tax credits, all our vendor and clients are expecting different GST ones and we have purchased new vehicles and plan to purchase one more soon so we are not aware how to bill!
Also are we expecting one tax slab even in this industry!
Please help!
Choosing GST Rate for Rent-a-Cab Services: 5% Without ITC or 12% With ITC? Analyze Costs and Market Impact. A user inquired about billing under the GST regime for a rent-a-cab service, questioning whether to use a 5% composite plan or a 12% plan for input tax credits, especially after purchasing new vehicles. Responses advised against the composite scheme, suggesting regular tax payment with credit for vehicle purchases. It was clarified that both billing options are available: 5% GST without input tax credit (ITC) or 12% GST with ITC, particularly since ITC is applicable for vehicles used in passenger transportation. It was recommended to consider cost-benefit analysis and market share before deciding. (AI Summary)
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