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

AI Summary

Service Provider Clarified on 18% Tax Rate for Government Car Rentals; Reverse Charge Mechanism Not Applicable A registered service provider was awarded a tender to supply car rental services to a government department, with no tax clause included in the tender document dated August 2019. The provider queried the applicable tax rate, having initially filed GSTR-1 at 18%. Responses clarified that the correct tax rate is 18%, comprising 9% SGST and 9% CGST, as per Notification No. 11/2017-Central Tax (Rate), and that Reverse Charge Mechanism (RCM) does not apply since the service is provided to a government department, not a corporate body.