TaxTMI 
TaxTMI 
Does HUF have the option of charging 5% on car rental if it does not take ITC? It has mixed income. Office rent and car hire. So, on office rent it will charge 18% and take ITC? On car hire it will charge 5% and not take ITC? Such differential treatment is permissible for a single assessee – depending on the nature of income?
Rate of GST and ITC
18 Apr 2019 
5 Replies 
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Mixed supply characterisation determines whether different GST rates and ITC positions apply to distinct supplies by the same assessee.
Whether an HUF may charge different GST rates and adopt different ITC positions for car hire and office rent depends on supply characterisation under the mixed supply concept in Section 2(74) and Section 8(b) of the CGST Act and on the cited Advance Ruling decisions; each supply must be examined on its facts to determine if supplies are distinct or constitute a composite/mixed supply, which dictates the applicable rate and ITC treatment. (AI Summary)
Whether an HUF may charge different GST rates and adopt different ITC positions for car hire and office rent depends on supply characterisation under the mixed supply concept in Section 2(74) and Section 8(b) of the CGST Act and on the cited Advance Ruling decisions; each supply must be examined on its facts to determine if supplies are distinct or constitute a composite/mixed supply, which dictates the applicable rate and ITC treatment. (AI Summary)