Based on Notification No. 29/2019, the service provided by way of renting a motor vehicle to a body corporate is subject to Reverse Charge Mechanism (RCM) at a rate of 5% if the supplier does not issue an invoice charging GST at a rate of 12%.
Regarding the scenario where the supplier provides services to both ABC Company (a body corporate) and another body corporate, charging GST at a rate of 12% and claiming full Input Tax Credit , there are no restrictions mentioned in the notification. Please advice correct position .
Yes, when GST @ 12% is charged by the supplier, then RCM shall not be applicable & ITC can be claimed by the supplier.
In case of any further queries, kindly mail me at casoravgupta @ gmail.com
Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)
CAclubindia
