To give effect to the decisions taken in the 38th GST Council Meeting held on December 18th, 2019, the Central Board of Indirect Taxes & Customs (“CBIC”) vide Notification No. 29/2019 – Central Tax (Rate) dated December 31st, 2019 has notified amendment in Notification No. 13/2017 – Central Tax (Rate) dated June 28th, 2017 (“Services under RCM Notification”) w.e.f January 1st, 2020.
In the Services under RCM Notification in the Table, for serial number 15 and the entries relating thereto, the following entry shall be substituted, namely :-
| (1) Serial No. | (2) Category of Supply of Services | (3) Supplier of Service | (4) 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 new entry in column (2) effectively requires that the cost of fuel be included in the consideration charged from the service recipient.
In column (3), the old entry stated as follows –
“Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business.”
Conclusion:
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% from the service recipient; and
(c) supplies the service to a body corporate located in taxable territory.
Read more at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-29-2019-cgst-rate-english.pdf