CMA Sagar Das (Working in Manufacturing Comapny) (149 Points)
16 January 2020We are a body corporate receiving cab services from a unregistered cab service provider. He include cost of fuel in his inovices. What will the RCM gst rate and whether we can take the credit of tax paid against RCM? please also provide gst notification no supporting your view.
CA Manmath Kumar Sahoo
(Partner)
(68 Points)
Replied 16 January 2020
As per notification No.-29/2019 Central Tax(Rate) dated 31-12-2019 service received in form of renting of motor vehicle designed to carry passengers then RC M is applicable & service receiver has to pay GST. GST Rate will be 5%
CMA Sagar Das
(Working in Manufacturing Comapny)
(149 Points)
Replied 16 January 2020
Thanks for your quick reply.
We are manufacturer of Motors. Whether we can take the credit of RCM paid in this regard?
CA Manmath Kumar Sahoo
(Partner)
(68 Points)
Replied 16 January 2020
No credit avail in respect of GST paid on RCM basis
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 17 January 2020
CA Manmath Kumar Sahoo
(Partner)
(68 Points)
Replied 17 January 2020
As per notification ITC is available only to those who are providing service in same line of business otherwise not.Refer notification 13/2017 Central Tax (Rate) dated 28-06-2017 & Notification 22/2019 of Centarl Tax(Rate) dated 30.09.2019
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 17 January 2020
AS PER NOTIFICATION 22/2019 CT (R) , READ WITH CIRCULAR 130/49/2019:
CONDITION PRESCRIBE FOR RCM ON RENTING MOTOR VEHICLE
1. RECIPENT SHALL BE BODY CORPORATE
2.SUPPLIER MUST BE OTHER THEN BODY CORPORATE WHO IS PAYING TAX AT RAE 5% WITH LIMITED ITC.
NOW IF WE REFER THE NOTIFICATION 11/2017 CT , IT PRESCRIBE 2 RATES FOR RENTING OF MOTOR VEHICLE
1. 5% WITH LIMITED ITC (MEANS CAN CLAIM ITC FROM SAME LINE OF BUSINESS)
2.12% WITH ITC
NOW IF SUPPLIER HAS OPTED THE SCHEME 12% WITH ITC THEN RCM IS NOT APPLICABLE , BUT IF THE SUPPLIER HAS OPTED THE SCHEME OF 5%(WITHOUT ITC) , THE RECIPIENT IS LIABLE TO RCM.
NOTE :AS PER SECTION 2(62) CGST ACT DEFINITION OF INPUT TAX INCLUDES THE TAX PAID ON RCM , HENCE THE RECIPIENT WHO HAS PAID & DONE RCM CAN CLAIM ITC FOR THE SAME.
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