Question
What is the GST rate applicable to renting AC
and Non-AC cabs to Indian Army?
Answer
There is no specific exemption notification for
supplying service of renting cabs to Indian Army. So general provisions will
apply.
Notification No. 11/2017-Central Tax (Rate) vide s.no. 10 provides rates for
renting of motor vehicles as follows:
| 10. Heading 9966 (Rental services of transport vehicles) | ||
| (i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. | 2.5 | Provided that
credit of input tax charged on goods and services used in supplying the
service, other than the input tax credit of input service in the same
line of business (i.e. service procured from another service provider of
transporting passengers in a motor vehicle or renting of a motor
vehicle) has not been taken. [Please refer to Explanation no. (iv)] |
|
or |
||
| 6 |
- |
|
| (ii) Time
charter of vessels for transport of goods. |
2.5 | Provided that
credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) has not been taken [Please refer to Explanation no. (iv)]. |
| (iii) Rental
services of transport vehicles with or without operators, other than (i)
and (ii) above. |
9 |
- |
(Reply dt.08/09/2018)