Place of Supply for Rent a Cab services

[Meenu Agarwal]

Our Unit is registered in Karnataka. We are having multiple project sites in different states which are added as addl place of business in the GST registration of our sister units registered in respective states. With the recent amendment, RCM is applicable to rent a cab services provided by any person other than a body corporate. The cab services are utilized in almost all sites. The Work order and payment to the service provider will be made by us. As per the provisions of section 12(9)(a) of IGST Act, the place of supply for rent a cab service is the location of the registered service recipient.

In this reference, kindly confirm,

(i) Can we consider our unit as the location of the service recipient and remit RCM in Karnataka, or

(ii) Intimate to other sister units for remittance in their respective states GSTN.

AI Summary

Company Seeks Guidance on GST RCM for Rent-a-Cab Services; Experts Advise State-Specific Remittance and Compliance Simplification A company registered in Karnataka is seeking advice on handling Goods and Services Tax (GST) for rent-a-cab services used across multiple project sites in different states. The main question is whether to remit the Reverse Charge Mechanism (RCM) in Karnataka or inform sister units to remit in their respective states. Experts in the forum suggest that due to state-specific GST registration, each sister unit should remit GST in their state. Additionally, they recommend using a 'bill to ship to' model or handling transactions through sister units to simplify compliance and avoid complex cross-charging.