TaxTMI 
TaxTMI 
There are two rate for Cab service provider, either he can charge GST @18% with ITC or he can do the billing @5% without ITC. If individual (proprietorship firm) do the billing by opting to pay @5% to body corporate, it comes under RCM. So my query in this is : can service provider do the billing to few body corporate by opting GST @18% with ITC and to few other @5% without ITC which will fall uder RCM and avail the ITC proprotionately in proportion to the billing @18%.
GST Rate for Cab service provider
16 Mar 2026 
7 Replies 
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Rate choice for cab services: supplier-level restriction limits using reduced rate without ITC versus standard rate with ITC.
Motor cab services qualify for either a concessional reduced rate without input tax credit or a standard rate with input tax credit; the non availment condition attached to the reduced rate operates at the supplier level and precludes selective invoice level application of the reduced rate where common inputs are used, unless supplies are demonstrably segregable. Separate notification provisions shift liability to recipients for supplies by individuals to body corporates under the reverse charge mechanism, and ITC used partly for reduced rate supplies must be apportioned or reversed by treating those supplies as exempt for credit reversal purposes. (AI Summary)
Motor cab services qualify for either a concessional reduced rate without input tax credit or a standard rate with input tax credit; the non availment condition attached to the reduced rate operates at the supplier level and precludes selective invoice level application of the reduced rate where common inputs are used, unless supplies are demonstrably segregable. Separate notification provisions shift liability to recipients for supplies by individuals to body corporates under the reverse charge mechanism, and ITC used partly for reduced rate supplies must be apportioned or reversed by treating those supplies as exempt for credit reversal purposes. (AI Summary)