Required Clarity on Notf no.29/2019(RCM)

[SOPL SOPL]

Dear Sir/Madam,

Please give clarity on Column no.3- of serial of 15 of notification no.29/2019 vs. notification no.22/2019. Actually Column no.3 meaning seems to be same, but wordings are bit different than earlier notf no.22/2019. Even though, i red the respective circular but didn't get the clarity.

Thanking you.

Regards

Gowtham

[Ganeshan Kalyani]

Reproducing the text from both the notifications

Services provided by way of renting of a motor vehicle provided to a body corporate. 22/2019 CTR

Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient, provided to a body corporate. 29/2019 CTR

[SOPL SOPL]

Thanks for reply.

Your are explain about Column no.2. my requirement is Column.no.3

Column no.3 of serial no.15 of Notification no.22/2019:

Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business.

vs.

Column no.3 of serial no.15 of Notification no.29/2019: Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient

So, Column no.3 meaning seems to be same for 22& 29 of 2019 notifications, but wordings are bit different between notification no.22 & 29/2019.

Regards

Gowtham

[PAWAN KUMAR]

Dear sir,

Plz read circular no.130 recently issued on this point. As per the circular, if supplier is individual and not body corporate, if supplier does not issue tax invoices with 12,% gst rate and if recipient is body corporate, then only services of renting of motor vehicles shall be under RCM. Earlier entry has been substituted with new entry and also retrospective effect.

[Ganeshan Kalyani]

Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient. NN 29/2019.

Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business. NN 22/2019.

Circular no. 130/49/2019 - 31-12-2019 clarifies the doubt.

AI Summary

Reverse Charge Mechanism applies where a non corporate supplier fails to issue a tax invoice charging central tax, making recipient liable.
The substitute notification and circular clarify that renting-of-motor-vehicle services supplied by any person other than a body corporate to a body corporate become subject to the reverse charge mechanism where the supplier does not issue a tax invoice charging the central tax rate; this replaces the earlier entry that addressed non corporate suppliers paying tax at a concessional rate with limited input tax credit.