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?

[KASTURI SETHI]

2020 (10) TMI 434 - AUTHORITY FOR ADVANCE RULING, KARNATAKA IN RE: M/S. YULU BIKES PVT. LTD.,

GST @18% under SAC 9966 is applicable, if ITC is to be availed by receiver of service. See serial no.10 (iii) of Notification No.11/17-CT(Rate) dated 28.6.17 as amended from time to time till 30.9.19. No amendment thereafter till 20.8.2020.

The following decision of AAR, Karnataka (Yulu Bikes (P) Ltd. 2020(10)TMI/434 will help you :-:-

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.