Rent a cab-Collector office

This query is : Resolved

Sonnal Khandaray (Querist)
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07 June 2021 Hi All

One of my clients is providing Rent a cab services. He has opted for 5% GST with no ITC.
He has provided services to Collector office in Maharashtra . His customer has asked to charge 18% GST in invoice. Can he do so? What are the implications of the same? If he collects 18% and pays it to Govt. Can Collector office take credit of the same?

Thanks in advance.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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07 June 2021 For renting of cab the rates are either 5% or 12%. If you charge 5% then you cannot take ITC on your purchases. If you charge 12% you can take ITC on your purchases.
The collector office is not eligible for ITC in either of the cases if the car seating capacity is of 13 persons or less