RCM on renting of motor vehicle

[KARAN VERMA]

Sir, individual person (Unregistered) provide car on rent ₹ 10000 per month to company. Rent price not include fuel cost.

Whether company liable to pay RCM on rent charges. If yes what will be GST rate 5% or 18%.

AI Summary

RCM Does Not Apply to Car Rentals Excluding Fuel Costs; Ensure Contract Clarity on Exclusions An individual provides a car rental service to a company for 10,000 per month, excluding fuel costs. The company inquires if it must pay GST under the Reverse Charge Mechanism (RCM) and, if so, at what rate. A participant clarifies that, according to a government circular, RCM does not apply if fuel costs are not included. It is recommended to have a contract specifying that the rental excludes fuel charges. The discussion also includes personal exchanges and welcomes between forum participants, expressing appreciation for one contributor's insights on GST.