RCM on renting of vehicle to body corporate

[SUSHANTA MISHRA]

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,

AI Summary

Reverse charge on vehicle renting applies where supplier pays concessional GST, making the corporate recipient liable.
Renting of motor vehicles by a person other than a body corporate is specified for reverse charge from 1 October 2019; the recipient body corporate is liable to pay tax under reverse charge only where the supplier (other than a body corporate) pays central tax under the specified concessional scheme for vehicle renting and satisfies the related input tax credit and other conditions; suppliers not paying under that scheme, including unregistered suppliers not remitting tax accordingly, are not intended to attract reverse charge on the recipient.