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GST ON RENT A MOTOR VEHICLE

Rajiv (Senior Accounts Officer) (1548 Points)

20 March 2018

OUR SERVICE PROVIDER PROVIDED BUS FACILITIES TO OUR STAFF. OUR SERVICE PROVIDER ARE REGISTER UNDER GST BUT OUR SERVICE PROVIDER NOT ADD GST @ 5 / 12℅ ON THEIR BILL DUE TO LESS TURNOVER. THEN IN THAT CASE WE WILL DEPOSIT GST ON THAT SERVICE . THIS SERVICE IS NOT CAME UNDER RCM. PLEASE REPLY

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7 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 March 2018

Dear Rajiv
when he registered (voluntary) he has to charge GST on his bill. kindly ask him to do so.
2ndly u cannot even claim input for the same , because it's block under sec17(5),

yes u can only avail input on such service if the Government notifies the services are obligatory for an
employer to provide to its employees under any law for the time being in
force;

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Rahul Prasad (CA Student) (1683 Points)
Replied 20 March 2018

if supplier is not registered in GST they will not charge GST from you. it may come under RCM after the RCM will come in notice fully. it can attract purcahse from unregistered dealer but what the new applicability have to wait 30th June.

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 20 March 2018

SUPPLIER REGISTER UNDER GST BUT TUURNOVER LESS THEN 20 LAKH. SO IN THAT CASE WE WILL DEPOSIT GST @ 5% 12% 18% ON IT. BUT THIS SERVICE CAN NOT CAME UNDER RCM

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 March 2018

sir
but why he not charging gst on his bill ???
once if he is registered , irrespective of turnover , he has to charge gst .
u can do RCM on services being provided by Unregistered

chamarthi venkatesh (Student CA Articleship) (848 Points)
Replied 20 March 2018

Service receiver can get ITC credit on the following ( exception to section 17(5))

1. Dealer of motor vehicles
2. Transportation of passengers
3. Driving schools
4. The vehicle used for transportation of Goods

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 March 2018

It's from section 17(5)

iii] rent-a-cab, life insurance and health insurance except where--

[A] the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or

so any services like, bus , cabs provided by employer to his employees , the employer cannot claim ITC on the same if unless govt notify such as obligatory for employment

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Rahul Prasad (CA Student) (1683 Points)
Replied 20 March 2018

agree with Pankaj Rawat sir that irrespective of turnover supplier have charge if they registered once. you liability to pay GST is not till RCM will again applicable (if that comes under that)

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