TaxTMI 
TaxTMI 
DEAR SIR,
WHAT IS RATE OF GST ON RENTING OF GOODS VEHICLE (MAHENDRA VAN), FOR WHICH ITC TO BE OBTAINED BY RECEPIENT OF SERVICE?
GST RATE ON HIRE CHARGES ON RENTING OF GOODS VEHICLE
15 Oct 2020 
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GST on renting of goods vehicle: supply treated as taxable at the standard rate when recipient avails input tax credit.
Where the recipient of renting a goods vehicle intends to avail input tax credit, the supply is taxable at the standard GST rate under the service classification for vehicle hiring; an Authority for Advance Ruling treated such supplies as taxable where the recipient claims input tax credit and relied on the relevant notification entry linking the standard rate to credit-claiming recipients. (AI Summary)
Where the recipient of renting a goods vehicle intends to avail input tax credit, the supply is taxable at the standard GST rate under the service classification for vehicle hiring; an Authority for Advance Ruling treated such supplies as taxable where the recipient claims input tax credit and relied on the relevant notification entry linking the standard rate to credit-claiming recipients. (AI Summary)