Gst On Hiring Of Vehicles

watch_later 3 years, 3 months ago


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.

  • chatComments
1 Answer

GST Payer watch_later 3 years, 3 months ago

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.

  • chatComments
Did Not get Answer?

Join the largest Taxation Q&A platform on internet and ASK YOUR OWN question.

Ask your Question

You need to be logged in to answer.

Ask Question