9.
Shri
Please refer my reply No.6 dated 22.06.2020. effort is made to simplify the matter.
In your case, renting of car with or without operator is to be classifiable under SAC 996601, however, as per Section 11(1) which reads as under
“(1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification”
Therefore, government by way of notification has specified service of Rental service of transportation of passenger vehicle with a condition that “where the cost of fuel is included in the consideration charged from the service recipient” at a reduced rate of 2.5% (effective 5%). Now if the cost of fuel will not charged from the service recipient, then the benefit of reduced rate will not be applicable, however, it does not effects the classification of service.
More simplifying, only the service as specifically described in the notification will be levied to such rate of tax, although falling under the same SAC code.
Hope this will clear your doubt and confusion.