RCM applicable on Services provided by way of renting of any motor vehicle to body corporate

RCM applicable on Services provided by way of renting of any motor vehicle to body corporate Government has issued Notification No. 28/2019 (Integrated Tax Rate) & 29/2019 (Central Tax Rate) notifying applicability of RCM on Renting of Motor Vehicle designed to carry passenger dtd. 31.12.2019 and also clarified vide CGST circular issued on same date that above notification is only Clarificatory in nature. It has been clarified that RCM should be applicable on Services provided by way of renting of any motor vehicle, provided to a body corporate by a Non Body Corporate, who does not issue an invoice charging central tax at the rate of 6 per cent. This has been explained with the help of below mentioned examples:

Mr A (Service Receiver)	Mr B (Service Provider)	Type of Services	Service Provider is Registered	GST Rate Charged by Service Provider on Tax Invoice	Whether RCM Applicable
Body Corporate	Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration	Yes	12	No
Body Corporate	Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration	No	NA	No
Body Corporate	Non Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration	Yes	12	No
Body Corporate	Non Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration	Yes	Less than 12 (Say 5)	Yes
Body Corporate	Non Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration	No	NA	Yes
Non Body Corporate	Non Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration	No	NA	No
Body Corporate	Non Body Corporate	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is not included in the consideration	No	NA	No

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India Ministry of Finance (Department of Revenue)

Notification No. 29/2019- Central Tax (Rate)

New Delhi, the 31st December, 2019

GSR......(E).- 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 the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 13/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, for serial number 15 and the entries relating thereto, the following shall be substituted, namely: -

[F. No.354/204/2019 -TRU]

(Ruchi Bisht) Under Secretary to the Government of India

Note: -The principal notification No. 13/2017 - Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28th June, 2017 and was last amended by notification No. 22/2019 - Central Tax (Rate), dated the 30th September, 2019 vide number G.S.R. 737(E), dated the 30th September, 2019.

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