RCM on bus services

[Kaustubh Karandikar]

A partnership firm is providing bus services to a body corporate and not charging GST in the invoice. Whether the body corporate is required to pay GST under reverse charge? If yes whether GST under reverse charge is @ 5% or 12%or 18%?

AI Summary

Corporate Entity's GST Liability on Bus Services: Transportation or Vehicle Renting? Clarification Needed for RCM Implications. A partnership firm providing bus services to a corporate entity is not charging GST, raising the question of whether the corporate must pay GST under reverse charge mechanism (RCM). The discussion revolves around whether the service is classified as transportation or vehicle renting, as this affects GST liability. If classified under transportation, RCM may not apply. However, if it falls under renting, the corporate entity may be liable to pay GST at 5% under RCM, per relevant notifications. Clarification on contract terms is crucial for determining the correct GST treatment and eligibility for input tax credit.