TaxTMI 
TaxTMI 
Reverse Charge Mechanism (RCM) on renting of motor vehicles
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.... Subject- Reverse Charge Mechanism (RCM) on renting of motor vehicles -reg. Suppliers of service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient have an option to pay GST either at 5% with limited ITC (of input services in the same line of business) or 12% with full ITC. 2. The GST Cou....
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.... on renting of motor vehicles with input tax credit only of input service in the same line of business Any body corporate located in the taxable territory. 3. Post issuance of the notification, references have been received stating that when a service is covered by RCM, GST would be paid by the service recipient and not by the supplier. Therefore, the wording of the notification that "any person....
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....e recipient, the service recipient shall be liable to pay GST under RCM. 5. Though a supplier providing the service to a body corporate under RCM may still be paying GST @ 5% on the services supplied to other non-body corporate clients, to bring in greater clarity, serial No. 15 of the Notification (13/2017) No. FD 48 CSL 2017 dated 29.6.2017 has been amended vide Notification (29/2019) No. FD 48....