As per Notification No. 22/2019- Central Tax (Rate) Dated 30th Sept 2019 , renting of vehicle by a person other than body corporate to a body corporate is covered under RCM U/s 9(3) of CGST Act w.e.f 1st October 2019. But it is not clear from the circular about the status of service provider (i.e registered or un-registered or both)
Query is :
1) Renting of vehicle by registered person to body corporate is taxable in the hands of body corporate under RCM U/s 9(3) or
2) Renting of vehicle by un-registered person to body corporate is taxable in the hands of body corporate under RCM U/s 9(3) or
3) Both
Regards,
Debate on GST Reverse Charge Mechanism for Vehicle Rentals: Does it Apply to Registered or Unregistered Providers? A discussion on the Goods and Services Tax (GST) focused on the reverse charge mechanism (RCM) for vehicle rentals to body corporates, as per Notification No. 22/2019-Central Tax (Rate). The main query was whether RCM applies when the service provider is registered, unregistered, or both. Opinions varied: some participants argued both registered and unregistered providers are covered, while others emphasized that only registered providers charging GST at 5% qualify. The consensus leaned towards registered providers being subject to RCM, provided they meet specific conditions, including charging the appropriate GST rate. (AI Summary)
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