Car rental to Government Department in tender

[KERAGODEGOPALARAO ANANTHARAO]

Dear sirs,

In a tender registered person got allotment of supplying renting of car to Government Department. A fixed amount as per tender is remitted to account of service provider.

There is no tax clause in tender document. Tender date is August 2019.

Query:-

1. What is rate of tax for car rental services

2. We filed GSTR-1 by charging 18%, if it is reduced rate, can make corrections.

Please sir

[KASTURI SETHI]

18% is correct. RCM is not applicable as the service is supplied to Govt Department which is not a body corporate.

[Prasanna Kumar]

As Mr.Kasthuri SethiJi mentioned the rate is 9% SGST + 9% CGST applicable to renting of vehicles(including cars) as per Notification No. 11/2017-Central Tax (Rate) New Delhi, the 28th June, 2017. It is covered in Serial No.10, (iii). The SAC is 996601.

Regards,

Prasanna Kumar

[KERAGODEGOPALARAO ANANTHARAO]

THANK YOU SO MUCH SIR

AI Summary

GST rate for vehicle rental: standard forward charge applies and reverse charge not applicable for government department supplies.
Car rental supplied to a government department under tender is taxable as renting of vehicles under SAC 996601 at 9% CGST and 9% SGST. Reverse charge is not applicable because the recipient is a government department that is not a body corporate. The supplier should charge tax under the normal forward charge and may amend GSTR-1 if corrections to the rate or details are necessary.