GST on Hire Vehicle given to Oil PSU like IOCL

[NARENDER YARRAGORLA]

If a Filling Station has one truck and given the same vehicle hire basis to Indian Oil Corporation. In the given situation, who is liable to pay tax either Filling station under FCM or the PUS under RCM or none of them as it is exempted?

AI Summary

GST Debate: Filling Station or Oil Corp to Pay Tax for Truck Rental? Focus on FCM vs RCM and Contract Terms. A discussion on the Goods and Services Tax (GST) implications for a filling station renting a truck to an oil corporation, such as IOCL, centers on whether the tax is payable by the filling station or the oil corporation. Opinions vary, with some suggesting the filling station pays under Forward Charge Mechanism (FCM), while others argue for Reverse Charge Mechanism (RCM) if the service qualifies as a Goods Transport Agency (GTA). The consensus leans towards FCM, emphasizing the importance of contract terms to determine the correct tax classification and rate.