RCM on fitness certificate

[KARAN VERMA]

Sir, whether RCM required to be paid on motor vehicle fitness certificate obtained from State Govt.

[KASTURI SETHI]

RCM is not applicable if motor vehicle is meant for transport of goods or passengers. The motor vehicles for above said purposes fall under the exclusion clause at serial no.5(2)(iii) of Notification No.13/17-CT(R) dated 28.6.17 aa amended up to 31.12.19

[Shilpi Jain]

There is an exemption available for

Services provided by the Central Government, State Government, Union territory or local authority by way of-

(a) registration required under any law for the time being in force;

(b) testing,calibration, safety check or certification relating to protection or safety of workers, consumers or publicat large, including fire license, required under any law for the time being in force.

If the fitness certificate can be said to be for the purpose of safety check relating to protection of public at large, it can be said not to be liable under RCM also.

[DR.MARIAPPAN GOVINDARAJAN]

RCM is not applicable.

AI Summary

Reverse Charge Mechanism not applicable for motor vehicle fitness certificates under GST, as clarified by three respondents. A query was raised regarding the applicability of Reverse Charge Mechanism (RCM) on motor vehicle fitness certificates obtained from the State Government under the Goods and Services Tax (GST). Three respondents clarified that RCM is not applicable in this context. The first respondent noted that vehicles used for transporting goods or passengers are excluded under a specific notification. The second respondent highlighted an exemption for services related to safety checks provided by government entities. The third respondent simply confirmed that RCM is not applicable.