Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 29/2019- Central Tax ( Rate) dated 31st December, 2019 to amend the entry no.15 of Notification No. 22/2019- CT
(Rate) dated 30-09-2019 so that RCM shall now apply on the service of renting of any motor vehicle designed to carry passengers including cost of fuel in the consideration charged from service recipient, if the supplier is not a body-corporate, does not issue invoice charging GST @12% from service recipient and supplies service to a body corporate.
CBIC has also issued Circular- 130/2019 – CGST to clarify on the amended entry of renting of motor vehicles covered under reverse charge mechanism. It has been clarified that a supplier providing the service to a body corporate under RCM may still be paying GST @ 5% on the services supplied to other non-body corporate clients, to bring in greater clarity, serial No. 15 of the Notification No. 13/2017-CT (R) dated 28.6.17 has been amended vide notification No. 29/2019-CT (R) dated 31.12.19 to state 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% from the service recipient; and
(c) supplies the service to a body corporate.
It may be noted that the present amendment of the Notification is merely clarificatory in nature and therefore for the period 01.10.2019 to 31.12.2019 also, clarification given at above para shall apply.
For further details please refer the attached documents.