GST Circular No 130/2019
Clarification on treatment of RCM on renting of motor vehicles to body corporates by non body corporates
It clarifies that RCM shall be
applicable on the service 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 only if
the supplier fulfils all the following conditions:–
(a) is other than a body-corporate;
(b) does not issue an invoice charging GST @12% (6% CGST + 6% SGST) from the service
recipient; and
(c) supplies the service to a body corporate.
