https://www.taxtmi.com/article/detailed?id=14397 Reverse charge mechanism applies to renting of passenger motor vehicles when the supplier is not a body corporate, the recipient is a body corporate, and the supplier does not charge the higher taxable rate on the invoice; only passenger carrying vehicles with fuel cost included are captured, while vehicles not meant for passengers or rentals where fuel is excluded remain subject to forward charge. The supplier's choice to charge the lower composite rate limits input tax credit and can trigger recipient liability under reverse charge, whereas charging the higher rate permits full input tax credit and removes recipient reverse charge liability. en-us Tue, 13 May 2025 09:19:23 +0530 Tue, 13 May 2025 09:19:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=14397 Reverse charge mechanism applies to renting of passenger motor vehicles when the supplier is not a body corporate, the recipient is a body corporate, and the supplier does not charge the higher taxable rate on the invoice; only passenger carrying vehicles with fuel cost included are captured, while vehicles not meant for passengers or rentals where fuel is excluded remain subject to forward charge. The supplier's choice to charge the lower composite rate limits input tax credit and can trigger recipient liability under reverse charge, whereas charging the higher rate permits full input tax credit and removes recipient reverse charge liability. Articles Goods and Services Tax - GST Tue, 13 May 2025 09:19:23 +0530 https://www.taxtmi.com/article/detailed?id=14397