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

Place of supply rules require RCM remittance by recipient location, requiring statewise GSTIN compliance not centralized.
Place of supply for rent-a-cab services under Section 12(9)(a) of the IGST Act is the location of the registered service recipient, and RCM applies to services by persons other than body corporates. RCM liability and tax remittance must follow the recipient's state-specific GSTIN; centralized registration or centralized tax payment is not permitted. If work orders and payments are made by the Karnataka unit it will be treated as recipient for GST purposes, necessitating tax accounting based on supplier location and possible cross-charges or use of a bill-to/ship-to invoicing model to allocate tax liability statewise.