TaxTMI 
TaxTMI 
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%.
RCM on renting of motor vehicle
09 Jul 2020 
9 Replies 
3071 Views Asked by
Reverse charge on motor vehicle rent depends on whether fuel is included in the taxable consideration; document exclusions clearly.
Reverse charge on motor vehicle rent applies only when fuel is included in the taxable consideration; if the contract or invoice explicitly excludes fuel and the company bears fuel costs separately, the rent-only supply is not subject to reverse charge. Parties should record the allocation of fuel charges in the agreement or invoice to substantiate that fuel is outside the rent consideration. (AI Summary)
Reverse charge on motor vehicle rent applies only when fuel is included in the taxable consideration; if the contract or invoice explicitly excludes fuel and the company bears fuel costs separately, the rent-only supply is not subject to reverse charge. Parties should record the allocation of fuel charges in the agreement or invoice to substantiate that fuel is outside the rent consideration. (AI Summary)