Clarification on GST on Rent a Cab and Extension of due date for Annual Return for 2017-18

Considering the technical difficulty being faced by the taxpayers, the GST Council had decided to extend the due date for furnishing Annual Report for the year 2017-18 to 31st January 2020. CBIC has issued Order No 10/2019 – Central Tax dated 26th December, 2019 granting the said extension. Also, CBIC has clarified on Reverse Charge Mechanism (RCM) on renting of Motor Vehicles vide Circular No 130/2019 dated 31st December, 2019.

1. Extension of due date for furnishing GST Annual Return for FY 2017-18

Details Provision
Order No 10/2019 – Central Tax Extension of due date for furnishing Annual Return for the Finance Year 2017-18 has been extended to 31st January 2020 (earlier due date was 31st December 2019)

2. Reverse Charge Mechanism on Renting of Motor Vehicle

GST Council recommended RCM for suppliers paying GST @5% without ITC. Suppliers paying GST @12% with full ITC, so that they may have the option to continue to avail ITC. Imposing RCM, otherwise, would have blocked the ITC chain for them. Accordingly, the following entry was inserted in the RCM notification with effect from 1.10.19

Notf. No Category of Services Supplier of Services Recipient of Services
Notf. 29/2019-Central Tax (Rate) dated 31.12.19 Services provided by way of renting of a motor vehicle provided to a body corporate Any person (other than a body corporate), paying central tax at the rate of 2.5% on renting of motor vehicles (ITC only of input service in the same line of business) Any body-corporate located in the taxable territory

 RCM at the rate of 5% 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.

(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)

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January 2021