Vinod (Delhi) (25 Points)
09 August 2017We are providing services of reting of Motor Cab. In 20th GST Council Meeting they Allowed option of 12% GST with full ITC. 5% GST with no ITC will also continue.
So my Questions are
(i) If we charge GST @ 12 % , Then can service receiver take ITC of GST paid by him?
(ii) and if we charge GST @ 5 %, then ,will service receiver be able to take ITC or not on GST paid by him?
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 09 August 2017
ITC would not available for rent-a-cab
In Both Cases
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 09 August 2017
In 1st cases Provider take input credit of GST on Input services
In 2nd case Provider can't take cerdit GST on input services
So its clear in both cases Service Receiver shall not be claimend input credit of GST
Asif Ansari
(Tax Consultant)
(159 Points)
Replied 09 August 2017
Tejas More
(2 Points)
Replied 10 August 2017
NO. ITC will not be allowed @ 5% even if paid under RCM
Vinod
(Delhi)
(25 Points)
Replied 10 August 2017
Then why the service receiver will take services from that person who opted 12% gst option.He would prefer to take services from that person who charge GST @ 5%
Kaushik
(General Manager)
(78 Points)
Replied 12 September 2017
suresh
(accountant)
(66 Points)
Replied 13 September 2017
Sir Pls confirm the below for Rent a cab GST Regime
| GST Rate | Service Provider | Service Receiver |
| 5% | No ITC | No ITC |
| 12% | ITC Availabe | No ITC |
| 18% | ITC Availabe | ITC Availabe |
Kaushik
(General Manager)
(78 Points)
Replied 13 September 2017
Sir there is no GST rate of 18 % on Rent A Cab. 18 % is changed to 12 % now. Service Receiver can not take ITC in both the rates. Service Provider will be able to have ITC on purchases made by hi. BUT HE WILL ALSO NOT BE ABLE TO TAKE ITC ON PURCHASES MADE FRO SAME LINE OF BUSINESS (CARS TAKEN FROM OTHER OPERATOR AND OTHER OPERATOR CHARGED GST). Of course this is what I have understood and Experts views are most welcome.
Kaushik
(General Manager)
(78 Points)
Replied 13 September 2017
Now coming to yesterdays point that service receiver would prefer to take services from that person who charge GST @ 5% I would like to express my point that the person charging 12 % and able to have ITC can reduce his rate marginally as cost of supply of service will be cheaper to that person. For example he will have ITC of GST levied on purchase of Car, purchase of Tyres, Purchase of Spare Parts, Labour etc. He can reduce rate or can give discount and then charge 12 %.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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