25 January 2021
Dear Sir/Mam My client provides cab services exclusively to a nationalized Bank. My query in this regard is - 1. whether should he charge GST in his invoices? 2. if no, what will the treatment of already filed 3B and GSTR 1 in which he already charged GST@18%. (18% charged by him mistakenly) 3. if yes, than at which rate?
26 January 2021
1. Yes you can charge. You have 2 options:
Option – 1: Pay GST at a rate of 5%. In this option, the person is allowed to take input tax credit of only GST paid on cab services taken from other persons. Any other GST paid cannot be taken as input tax credit and will simply lapse.
Option – 2: Pay GST at the rate of 12%. In this option, the person is allowed to take input tax credit of all input goods and services subject to general restrictions on the use of input tax credit.
There can be a case when the customer is charged based on fuel plus service charges. In that case, GST is to be charged at a rate of 18% on service charges.
2. You have paid excess GST, so nothing to be done. As you have collect excess tax, you need to pay such tax to Govt.
3. You have to charged at 12%
26 January 2021
Thank you so much mam, your reply is really helpful, but i have one more query- As he is providing services to Bank i.e. body corporate, so whether bank will pay GST on it under RCM??
CAclubindia
