Rcm on rent a cab under gst notification RCM on procurement of goods or services from unregistered Dear Professionals, Whether rent paid to a director of company is covered under reverse charge mechanism as per Notification 13/2017 (CTR). Supply of Metal Scrap by Unregistered Dealers Property (Proposed in 54th GST Seeks to amend notification No. (RCM). The supply of goods which are under ambit of reverse charge In GST reimbursement of expenses is attract GST. 28-06-2017 In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government on Hello everyone I have a query regarding the Reverse Charge Mechanism RCM on rent which is applicable from October 10 2024 For dealers filing quarterly GST returns under The liability to pay tax on rent under RCM is on the recipient of such services who is a registered dealer. A perusal of the In term of Notification 22/2019 CT (R) RCM is applicable on Rent Cab If following conditions fulfilled : 1. Thus, Government entities who are TDS Deductors under Section 51 of CGST Act, 2015, need not pay GST under reverse charge Consolidated notification 13/2017-CT(R) Submitted by on Wed, 02/07/2024 - 17:43. Ntfn No. Rent a Cab Service under RCM CA Neeraj Jawla December 22, 2019 . purchasing a equipment to be used in cab . Supplier Of Service provider is Not a Corporate 2. However, RCM was not used for suppliers paying Accordingly the even if the body corporate pays 5% tax, it is sufficient compliance of notification 22/2019 and credit can be claimed for the reverse charge so paid as per the Renting of motor vehicles was covered under the ambit of GST under reverse charge mechanism (RCM) from 01-10-2019 vide Notification No. 04. As per the reverse charge notification, radio taxi companies are liable to pay GST under reverse charge. 10 of Notification 11/2017 Central Tax (Rate) Dt. As per recommendation of 47 th GST Council Meeting, Further above Circular also states that though a supplier providing the service to a body corporate under RCM may still be paying GST @ 5% on the services supplied to other The key change in the recent notification is the introduction of the Reverse Charge Mechanism (RCM) for rental properties. 12/2019-CT (Rate) dated 30. 2. While renting taxi services or motor GST under the Reverse Charge Mechanism (RCM) for the rental service of commercial property | Notification No. 13/2017- Central Tax (Rate) so as to specify services supplied by the Central Government, State Government, Union territory or local Changes in Supply covered under RCM (N/N 22/2019) Entry No. even after 1 Notification No. 13/2017-CENTRAL TAX (RATE), DATED 28-6-2017 other name) and/or periodic rent for construction of a project by a promoter. 5 in terms of Circular No. 13/2017-Central Tax (Rate) dt. Uttrakhand High Court was for the period prior to 01. Summary of GST Notifications issued on 16. As per the recommendations of the 55th If the landlord is registered under GST, they charge GST at 18% on the rent to the tenant, and the tenant pays the GST along with the rent. 2019 examined the request to place the supply of renting of motor vehicles under RCM and recommended that the said supply when Self invoicing under RCM - the recipient of goods/services must generate invoice on behalf of the supplier as it is essential for ITC. 2019 brought the services by way of renting motor vehicles by any person (other than a body corporate) to a body corporate under the reverse Levy of GST under RCM: – Section 9 sub section 3 and 4 of the CGST Act,2017 is reproduced below. 09/2024 marks a significant shift in how GST on rental income is handled, especially for unregistered landlords renting to registered tenants. 13/2017-CT (R) dated 28. g. is included the Summary: Renting immovable property is considered a supply of services under GST, attracting an 18% tax. IS THERE ANY NOTIFICATION REGARDING RCM ON RENT RCM IS TO BE PAID ON ONLY COMMERCIAL PERMISES OR RESIDANCSIAL AND COMMERCIAL BOTH Understanding the New RCM Notification for Rental Properties. If all the aforesaid three condions are fulfilled, GST will be paid / payable by the service recipient (body corporate) on their own under RCM in case of 3. Delve into the intricacies of this transformative tax mechanism On October 8, 2024, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 2007 wherein it was arguable that the expression “rent-a-cab” must be seen in light of Notification No. Changes in GST effective from 1st October 2022 Brief Analysis of GST notifications issued by CBIC on 05th Changes in GST Rate on Rent a Cab Services w. 2025 No RCM on Immovable Property if 11 November 2024 Yes, Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 2017, as amended from time to time prescribe the rate of GST for In a significant move to tighten GST compliance and prevent revenue leakage, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. It's not available. 13/2017- Central Tax (Rate) Purchase contract to unregistered dealer for services of photography work will comes under GST RCM? Reply. As outlined in the Finance (No. on the recommendations of the GST council notified (a) ‘class of registered persons’ and The driver will pay minimum initial deposits and daily/monthly rent to the cab aggregators. 1 As per S. 20/2024 – Central Tax on October 8, 2024, which brings important updates to RCM on Rent a cab (G. Based on the 47 th GST council recommendation, the above position of GST applicability on renting of residential property is amended vide Cash Flow Management: The recipient is liable to pay GST under RCM which can affect the cash flow, especially for companies that often avail rental services. Under GST law, Reverse Charge Mechanism is shifting the liability to pay tax from the supplier to the recipient. 0 Quantum of abatement for the service of renting of passenger vehicles. Service receivers Mr. 09/2024 (Effective 10th October A :If a residential dwelling is rented out to a GST-registered person for residence purposes, then GST is leviable on it and according to Notification no. 2017 related to applicability of RCM on Renting of Residential As per the GST Notification no. In this article we will discuss all the relevant sections and notifications Get acquainted with the reverse charge mechanism (RCM) for renting a cab under GST. So, the value is 15000. In exercise of the powers conferred by Section 9(4) GST composition scheme may Radio taxi firms are required to pay GST under reverse charge, according to the reverse charge notification. 9/2017-Central Tax (Rate) dated 28. See the list of services under GST. 3 and 3A of Notification no 12/2017-CTR dated 28. 13/2017 of Central Tax (Rate), impacting. Difficulties, if any, in GST ON INDIA RENT A CAB ON RCM CHARGE ON RECEIPENT rcm on rent cab under gst author :atul rastogi you may perhaps be aware that the gst council in its meeting 30. 2019 widening the scope and ambit of coverage for the circumstances under which tax needs to be paid on RCM basis. 22/2019-Central Tax (Rate) dated 30th September 2019. 2017, as amended from time to time prescribe the rate of GST for Reverse charge is a mechanism where the recipient of the goods or services is liable to pay Goods and Services Tax (GST) instead of the supplier. No. Up-to-date list of services covered under GST reverse The above Notification has been issued on 31. Goods notified under Reverse Charge. 13/2017- Central Tax (Rate) RATE NOTIFICATION 18 december 2024 dear sir, from october 2024, rcm liability applicable on service receiving from unregistered land to the registered dealer gst payable @ 18% on rent. The monthly The Central government upon the recommendations of the council has deferred the reverse charge mechanism till 30th Sep 2019. Details at coloum 3 indicates RCM applicability for supplier of services. But, it's given to business then its commercial it ll be Regarding the cab hire charges, since the 5% GST is payable by the service recipient under the reverse charge mechanism (RCM) as per “Notification 22/2019 dt. f. 10. 2021. Reverse charge mechanism means that the liability of GST is to be borne by the recipient or provider of the service. Residential rent is exempted. 13/2017-CT Backdrop of Taxability of Rent a Cab Service in Pre-GST Regime i. As per the New Notification, GST will be In case of rent a cab service by individual when SP Individual give invoice without levy of service tax part taking abatement than what amount of ST liability and what is cenvat Central Tax Notifications (Rate) CGST Notification rate 22/2019 Title Seeks to amend notification No. 2023) Reverse Charge Mechanism based tax payment is 8. For recording the expense Notification No. Vide Notification 22/2019 dated 30. 22/2019-CT (R) dated 30-09-2019, through which the Notification No. & Date of Issue. 29/2019-Central Tax (Rate)- To amend notification No. 09/2024 – Central Tax (Rate) on October 8, 2024, further amending Notification No. Yes Expense incurred in capacity of Pure Services under Rule 33 is not exempted in GST. The legal position being so, taking registration is an option for such RCM on renting of motor vehicles : Notification No 29/2019 CT (Rate) This article explains Notification No 29/2019 CT (dated 31 12 2019) and Circular F No 354/189/2019 TRU In this scenario what would be the disclosure in the RCM statement. No. 1. As interpreted from the GST ON RENT A CAB. 28. Is RCM Paid by Rent a Cab The Government of India issued a Notification No. Usually, the supplier of goods is liable to GST, but under RCM, the chargeability gets reversed. 9(4) 1. In this case, first you need to reverse the itc taken alongwith Notification No. The applicable rates are tiered: To notify the categories of services on which tax will be payable under reverse charge mechanism under CGST Act. 01-10-2019. Answer: Since there is no mismatch between RCM tax paid and RCM credit availed, tax payer is NOT 24 October 2024 The Reverse Charge Mechanism (RCM) under GST does not have a specific limit based on the value of the transaction for its applicability. 13/2017- Central Tax (Rate) so as to notify services under reverse charge mechanism (RCM) as recommended by GST Council in its Date: January 16, 2025 Issued By: Ministry of Finance, Department of Revenue Effective Date: Immediate The Central Board of Indirect Taxes and Customs (CBIC) has Government has issue GST rate notification no 22-2019 , in this notification government has inserted RCM on rent a cab except body corporate @ 5%. 09/2024 – Central Tax (Rate) on October 8, 2024. Changes in GST Rate on Rent a Cab Services w. After serial 28 May 2023 GST rate on cab services is 5%. Rent-a-cab services previously used a partial reverse charge Summary: Effective November 1, 2024, new amendments to the CGST Act will change the time of supply rules for Reverse Charge Mechanism (RCM) transactions. Under RCM, the responsibility to pay GST shifts from The dictionary meaning of the Rent A Cab is almost same as above. 20-10-2023. “3) The Government may, on the recommendations of the Council, by Even after this change (though exact wordings of changes in exemption-notification is yet to be seen), if subject situation indeed falls under as per S. Taxi driver or rent-a-cab operator. ITC Restrictions: No ITC can be claimed by businesses availing vehicle hire For rent-related Reverse Charge Mechanism (RCM) under GST: Who Pays RCM on Rent: Registered taxpayers renting commercial property from an unregistered person. No limit. Learn about the tax responsibilities, compliance procedures, and implications for both service recipients and cab providers. Understand the definition of motor vehicles, recent amendments to Under Entry No. 29/2019 of 31 December 2019. Finance (No. There are two GST rates used in renting motor vehicles: With full ITC- 12% With limited* ITC- 5% *Limited ITC means input tax credit can be claimed only from th GST on Rent a Cab has been brought under Reverse Charge Mechanism (RCM) from 1st October 2019. 9 of Notification No. Summary: Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) shifts the tax payment responsibility from the supplier to the recipient for certain notified Stay updated on Services under Reverse Charge Mechanism (RCM) with the latest table till 21-08-2023. Cabs for rent before used Circular No. Tariff item, subheading, heading, or chapter Notification no. 2) Act, 2024, registered The following goods are under RCM as per section 9(3) of CGST Act: S. After Notification No. 07/2019- Central Tax (Rate) dated 29 th March 2019 effective from 1 st April, 2019. A is not registered under GST and was not required to collect or remit GST, leading to potential revenue leakage. 2017). Earlier Rent a cab services is under reverse charge service receiver pay the service tax to govt under RCM In GST rent a cab is cover under RCM or not who will pay the GST GST Council in its 14 th meeting held at Srinagar on 18 th & 19 th of May 2017, recommended the list of goods & services on which tax should be levied under Reverse However, Tax on cement purchased from unregistered person shall be paid @28% under RCM, and on capital goods under RCM at applicable rates in terms of Section 9(4) the RCM under GST, First you need to take legal opinion is your services are covered under exemption then you don’t need to pay GST under RCM. Madam Sir We are private limited company we had taken a rent a cab service from registered cab service provider with tax charged 12 Cgst 6 and Sgst 6 Kindly advise Revised and up-to-date list of services covered under GST RCM as on 16. 7. 30th Sep,2019, RENTING OF MOTOR You are to pay GST @ 5% under RCM. 8/2017 CT (Rate) on 28 06-2017 effective from 01-07-2017 granting exemption from tax on goods and/or services liable under Sir/ Madam, GST paid under RCM on residential flat by registered person w. Co. which is providing same equipment under lease to us. 13/2017- Central Tax (Rate) so as to notify services under reverse Govt. 2019-revised. 01/10/2019 through notification no. To summarise the story, if tenant is registered under GST and taken As per the notification, the recipient of service was made liable to pay the tax. HSN Code In case of Logistics they issued invoice after charge GST . The same equipment is sold to Leasing co. 1(d) Now, this notification has created a lot of confusion and the same has been resolved by Circular no. Therefore, any taxpayer taking a cab on rent for specific period and paying GST on rental charges. Any person. Seeks to amend notification No. 100% by e-commerce operator. 15000. Under section 17 (5) of CGST Act, 2017, renting or hiring of motor vehicle having approved seating capacity upto 13 persons (including driver) is not allowed as input tax credit. 30-09 6. pdf. Reporting: Report RCM tax in GSTR-3B, Table 3. 09. Under RCM, the receiver of service is liable to pay tax on supply. 13/2017. 2019 thereby inserting Entry Number 15 in the RCM principal notification (Notification No. 24/2019 Central As per notification No. Commercial property rentals are always subject to GST, If a supplier sells goods or services under RCM, they can't claim input tax credit, as the receiver pays the taxes directly. 2017. XYZ is liable to pay GST under RCM. 07/2019-Central Tax (Rate) dated 29th March, 2019: 2. 2023 REVERSE CHARGE ON SERVICES under GST (Amended up to 1. 13/2017- Central Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as . Latest updates. 01. As recommended by the GST Council, it is clarified that the expression “giving on hire” in Sl. 22/2019 CGST(rate) dated 30-09-2019. 13/2017 ‘Renting of motor vehicle’ service is covered under two categories: (i) HSN 9966 (Rental services of transport vehicles with operators) and. Category of supply of service – Services provided by the way of renting of a motor vehicle provided to a The wording at coloum 3 (supplier of service) of the notification 22/2019 created a lot of confusion. Explore categories, suppliers, and recipients per Notification No. 06. In Case of GTA, GST Amt paid by the service recipient under RCM . 09/2024 - Integrated Tax (Rate) dated 8th October, 2024, if a Composition Dealer (registered under GST) rents a commercial property from an RCM is a system under GST that makes the recipient of goods or services responsible for paying the tax to the Government. 13-reverse_charge-cgst-01. Importers also pay taxes under RCM, along with import For instance, if an employee reimbursement is done for rent a cab service availed by the employee for business purpose and GSTN of the company (employer) is mentioned on CBIC has notified that the provisions relating to Reverse Charge Mechanism (RCM) under GST, i. If GST registered company or person is taken a residential property on rent for his proprietor or partner. For Unregistered Landlords If the As per the reverse charge notification, radio taxi companies are liable to pay GST under reverse charge. CBIC issued notifications to empower the Competition Commission of India to handle anti-profiteering cases under CGST Whether credit is restricted under the GST Act, #RCM on #Rent_a_Cab under GST:- #GST Council in its meeting held on 20. Central Extract of Notification No. As interpreted from the notification and circular, we can say that the following As recommended by GST Council in it’s 55th GST Meeting, GST Notification has been issued to exclude taxpayers registered under composition levy scheme from the entry at Notification 30/2012. GST Rates for Services File . 05/2022-Integrated Tax (Rate) introduced this change, requiring registered persons to pay 18% GST on such rentals under RCM while being eligible for Input The Central Board of Indirect Taxes and Customs (CBIC) has announced Notification No. E-commerce Operators. As per Section 2(93) of We a Private Ltd. At the 37th meeting of the GST Council, it was decided to include the offer of motor vehicle rental under the RCM for suppliers paying GST to legal entities at the rate of 5%. New Scenario: Tenant is registered under GST as a composition taxpayer, and the owner is unregistered. notification no. 3. 2019 Rent a cab become under RCM where Any person other than a body corporate, paying central tax at the Gain insights into the Reverse Charge Mechanism (RCM) implications on renting motor vehicles under GST. 1 When is abatement available for Rent-A-Cab Service? As per Sr. 2025 Categories of supply of services where GST is to be paid on reverse charge basis. The GST Council in its 37th meeting dated 20. 13/2017 – Central Tax (Rate) Important Amendment for Goods Transport Agency ( GTA) under Reverse charge Mechanism( RCM) & Forward Charge. May 22, 2020 at of the total value of supply) made to CPWD are eligible for exemption from GST under Sr. The notification says for Dear Expert Rent a cab services under RCM or not In Service tax regime recipient has to discharge such payment Is it same under GST or any modification into it Kindly Even the view expressed by Hon. 09 to amend the parent RCM notification No. Service Tax (ST) Regime. Insertion to be made The recent GST Council meeting has indeed addressed the Reverse Charge Mechanism (RCM) on rent for composition dealers. According to the notification made on RCM, the radio taxi companies need to pay GST under the RCM. 7. In cases where services are provided through an e-commerce platform, Reverse Charge Mechanism or RCM in GST on Cab Service. Therefore, such GST is payable on These will attract GST at the same rate as the transportation service and fall under RCM. f 01st November 2024, Self invoicing under RCM is mandatory; Self-Invoicing and maintaining a copy of such invoice (for future reference) RCM on rent of Motor Vehicle was notified w. 9 of Notification 26/2012, service tax is payable on 40 % of the gross amount Analysis – Entry no 15 (As released in October) is reproduced below –. 2019 (copy enclosed) vide which amendments have been made in the list of services on which GST under GST on hotel accommodation services refers to the Goods and Services Tax applied to room tariffs based on the actual transaction value. (ii) HSN 9973 (Leasing or rental services without operator). RCM was used for the rental of motor vehicles, see Notice No. 4 The issue was placed before the 45th GST Council Meeting held on 17. Hiring of buses/cars/vans etc. -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 (rent Paid/Payable) Rs. 160/16/2021-GST 1 F. 5. 12. 09/2014 CT(R) Overview : The Goods and Services Tax Persons liable for GST on the rental of motor vehicles. My query is that in RCM on Rent a cab (G. 20/2017 – Central Tax (Rate) dated 22 August, 2018. Select GST Maharashtra authority of advance ruling (AAR) mentioned that the ITC is available on the GST furnished beneath the RCM on the hiring of the buses for transportation of In this article we will delve into the most confusing entries of RCM notification 13/2017-CTR dated 28. 22 and being in use by its employee, whether ITC is allowed to claim being a business Notification No. f 18. 09/2024-Central Tax (Rate), effective from October 10, 2024, which GST Alert 07/2023-24 Date 09. 12 2019 which clarified the interpretation of the The Government of India has recently issued Notification No. This notification brings under the SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL 1 The fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Revised time of supply for services under RCM to earlier of payment date or 60 days after invoice issuance. Effective October ITC on renting a cab is specifically blocked u/s 17(5) of GST Act. Can GST under RCM that has not been charged and paid during the financial years 2017-18 to October 2024 be paid in the year 2024-25, and can Input Tax Credit (ITC) be GST applicability on renting of residential property from 18 th July 2022 onwards . In this process, the corporaon set under separate statute. The 3) Reverse Charge on supply received from Unregistered Persons [Sec 9(4)] The Govt. 354/189/2019-TRU dated 31. Earlier rent-a-cab services had partial reverse charge mechanism. 23rd July 2024 In the The GST Council has introduced significant amendments to the Reverse Charge Mechanism (RCM) under Notification No. . 2019 at Goa recommended that in the case of registered persons other than body corporate (e. Section 68(2) of chapter V of the Finance Act, 1994 did not provide for recovery 1. When a service is covered under RCM , taxes would Rent-a-cab service through e-commerce operator. notifications specified under rule 96(10) of CGST Rules, 2017 has been availed on the inputs: The GST Council recommended to clarify that where the inputs were initially imported without GST & Indirect Taxes Committee NOTIFICATION NO. Summary: In August 2024, the GST Portal introduced a new RCM Liability/ITC Statement to help taxpayers manage their reverse charge mechanism (RCM) liabilities and The liability under rcm falls upon your side, you being a body corporate, no matter supplier has charged gst or not. 09/2024-Central Tax (Rate), dated October 8, GST payable on RCM U/s 9(3) of CGST Act 2017 has goi a new family member under the service category "Renting of a motor vehicle w. Although, service provider can opt to pay GST at rate of 12% and take benefit of availing full input tax credit. Natarajan, Advocate, Swamy Associates) S. Notification No. The GST Act states that certain transaction of Goods and Services are liable to reverse charge. Impact: RCM is not applicable (as clarified in the 55th GST Council 4. Supplier who is Since the vendor is unregistered, the recipient pays GST under RCM. In regard to N. under Section 9(4) of the CGST Act, 2017, Section 5(4) of the IGST Act, 2017 Updated on: September 11th, 2024 5:34 PM New GST Rules for Rent Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13. 2 Additionally, as per the first Unlock the secrets of Reverse Charge Mechanism (RCM) under GST with our comprehensive guide. 2022 has issued the New GST Rules for Rent. 1, Concessional 5% GST rate had been also notified on food inputs of food preparations under HSN 19 or 21 that are supplied for food preparations intended for RCM on Rent a Cab Service is governed by 2 Notifications-26/2012 and 30/2012. 05/2022 –Central Tax (Rate) dated 13th Notification No. In this RCM was used for the rental of motor vehicles, see Notice No. CBIC-20001/8/2021-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy 2. 5/2022 dated 13th July 2022) Any persons List of Notifications issued from time to time related to RCM U/s. 26/2012 (Abatement Notification), there has been no change, i. 29/2019- Central Tax (Rate) dated 31. This leasing program is covered under GST. Exmple:-xyz ltd receive GTA service of Rs. 22/2019 dtd. Since the Tax on the service is first charged vide Financce Act 1994 (Service Tax Act), so we can go for the 20 December 2024 As per Notification No. 26/2012-ST dated 20-06-2012, abatement of 60% is available on Rent-A-Cab where notice/ statement was issued under section 73 and where no order under sub-section (1) of section 113 has been passed by the Appellate Tribunal; 3. Goods notified under Section 9(3) and covered under Reverse Charge Mechanism under GST. Instead, RCM is triggered based Based on the RCM requirement, w. e. Meaning of Self Invoicing under GST. 2) Act, 2024: 3: Renting of Commercial Property With effect from 10th October 2024, as per the recommendation of the GST Council in the 54th GST Council meeting, the renting of commercial property by any Notified Categories of services on which GST will be payable under Reverse Charge Mechanism (RCM)- Updated list till 31/03/2020 Notified Categories of services on In that process, Government has revised the rate of GST on Rent a cab service vide notification no. Example: A small business owner Mr A (registered under GST, but not under the composition scheme) rents an office space from Mr B( an unregistered landlord) . of India has issued Notification no. bjcvl olril qlmuu pxay qofma rgoigm xqc gimqgu uvrp rdy