RCM Motorvehicles

[Madhavan iyengar]

In terms of notification dated 22/2019 CT regarding RCM on rentals of Motor vehicles in view of the provisions

a) the Individual/ Firm/LLP who are supplying the service to a body corporate can't charge 12% GST since the service is being supplied to a body Corporate who has to discharge GST on RCM @5%

b) However if individual// firm/LLP supplying the service to individual/firm/LLP they can continue to charge 12%

Expert views solicited

AI Summary

Reverse charge on motor vehicle rentals: supplies to body corporate attract RCM, others may be charged standard GST by supplier.
Reverse Charge applies to motor vehicle rental services supplied to a body corporate, shifting GST liability to the recipient; suppliers (individuals, firms, LLPs) must not charge tax in such cases. Supplies to non-body corporate recipients may be taxed normally by the supplier. LLPs and partnership firms are not treated as body corporates under company law, and company-specific statutory explanations are confined to their sections.