TaxTMI 
TaxTMI 
XYZ Ltd. Is hiring Bus (More than 13-seater capacity) for transporting the employees. The supplier of bus service is not charging GST being not registered with GST and is a proprietor. Is XYZ Ltd. liable to pay GST on it under reverse charge?
Reverse Charge - Renting of Motor Vehicle
15 Nov 2019 
2 Replies 
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Reverse charge on renting of motor vehicle: recipient not liable when the supplier is unregistered, notification scope controls.
Where a company receives bus-hire services from an unregistered proprietor, the recipient is not required to pay tax under the reverse charge mechanism because the recipient-liability provisions are inoperative except for services specified in notification, and the renting-of-motor-vehicle service in the query is not among those notified; by contrast, reverse charge may apply where a registered provider supplies motor-vehicle renting to a company and the service falls within notification-based recipient liability. (AI Summary)
Where a company receives bus-hire services from an unregistered proprietor, the recipient is not required to pay tax under the reverse charge mechanism because the recipient-liability provisions are inoperative except for services specified in notification, and the renting-of-motor-vehicle service in the query is not among those notified; by contrast, reverse charge may apply where a registered provider supplies motor-vehicle renting to a company and the service falls within notification-based recipient liability. (AI Summary)