GST RATE ON HIRE CHARGES ON RENTING OF GOODS VEHICLE

[KERAGODEGOPALARAO ANANTHARAO]

DEAR SIR,

WHAT IS RATE OF GST ON RENTING OF GOODS VEHICLE (MAHENDRA VAN), FOR WHICH ITC TO BE OBTAINED BY RECEPIENT OF SERVICE?

AI Summary

GST on Renting Mahindra Van: 18% Rate Applies if Input Tax Credit Claimed, per SAC 9966 and Notification No. 11/17-CT(Rate). A query was raised regarding the applicable GST rate on renting a goods vehicle, specifically a Mahindra van, when the recipient intends to claim Input Tax Credit (ITC). The response referenced a decision by the Authority for Advance Ruling in Karnataka concerning Yulu Bikes Pvt. Ltd. It was clarified that an 18% GST rate under SAC 9966 applies if ITC is availed by the service recipient, as per Notification No. 11/17-CT(Rate) dated 28.6.17, with amendments up to 30.9.19 and no further changes until 20.8.2020.