watch_later 16/11/17


If Mr.X sells goods inclusive of transportation who take 5 vehicles only on hire @ 30000/- per month each, diesel, repairs, drivers salaries etc are born by Mr.X,

1. is he liable to pay GST on such hire charges on RCM. 

2. can he take input credit of GST on repairs etc.

3. as his product is in 5% slab, he is charging GST @5% inclusive of transportation charges.  Is this practice correct or not.

1 Response | Latest response: 16/11/17 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 16/11/17

In this case, if rate of GST on products sold is 5% then you have to charge 5% on transportation charges to buyer.

Regarding GST on renting of vehicle, the rate is 18%. You will need to pay tax at 18% under RCM.

You are eligible for input credit on GST paid under RCM as well as expenses incurred such as repairs.


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