RCM ON RENTING OF MOTOR VEHICLES UNDER GST

[arun das]

As per the GST Notification no.22/2019 dtd.30th Sep,2019, RENTING OF MOTOR VEHICLE has been brought under RCM bracket. The definition of 'Motor Vehicle' under Motor Vehicles Act covers almost all motorised vehicles ,except a few. In this regard kindly confirm the following;

1. Whether hiring of vehicles for TRANSPORTATION OF EMPLOYEES by a company on a regular basis , will attract RCM? (fuel cost included in contract,ITC is not availed by the supplier, The contract nomenclature is " Hiring of Buses/Cars for a period of 3 years")

2. What if the fuel cost is NOT included in contract, in the above example.

3. Is there any separate treatment applicable for CASUAL hiring contract ( hiring on need basis)

There is lot many confusion exist in the industry with respect to above inclusion . Kindly throw some light on this pls.

AI Summary

Reverse charge on renting of motor vehicles shifts GST liability to the body corporate recipient where notification conditions apply.
Renting of motor vehicles supplied to a body corporate by non-corporate persons is subject to reverse charge, making the body corporate recipient liable to pay GST; fuel cost inclusion does not change recipient liability, and casual hiring receives the same treatment. Time-of-supply rules determine RCM applicability where services were performed before but invoiced or paid after the amendment; corporate-provided employee cab services are treated under forward charge, not RCM.