Renting of Motor Vehicles-RCM

Liability to pay tax under RCM on renting of motor vehicle by Body Corporates being recipient has been inserted w.e.f. 01.10.2019 in Serial no. 15 of N. No. 13.2017-Central Tax (R) dated 28.06.2017. The said entry has been amended by N. No. 29/2019-Central Tax (R) dated 31.12.2019 as :

Sl.No.	Category of Supply of Services	Supplier of service	Recipient of service
15	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient, provided to a body corporate.	Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient	Any body corporate located in the taxable territory.

The Central Government has clarified the position of law that after the amendment referred above, the liability to pay GST on renting of motor vehicles under RCM shall not arise if any of the following conditions is satisfied:

Cost of fuel is not included in the price charged from the service recipient.
The service recipient is not a body corporate.
The service provider is a body corporate.
The service provider issues an invoice charging 12% (availing full ITC) GST from the service recipient.

The liability to pay GST under RCM on renting of motor vehicle has been summarized as under:

S.No.	Constitution of Supplier	Supplier Registered under GST?	Cost of Fuel is included in the total consideration charged?	Supplier is charging GST @ 12%?	Constitution of Recipient	Whether Service Receiver is liable to pay GST under RCM
1.	Non-Body Corporate	Registered	Yes	No	Body Corporate	Yes
2.	Non-Body Corporate	Un-registered	Yes	NA	Body Corporate	Yes
3.	Body Corporate	–	–	–	–	No
4.	–	–	–	Yes	–	No
5.	–	–	–	–	Non-Body Corporate	No
6.	–	–	No	–	–	No

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