Is GST applicable on hiring of vehicle?

It was decided in the 37th GST Council Meeting to put the supply of renting of motor vehicles under RCM for suppliers paying GST at 5\% to corporate bodies. But, RCM was not made applicable for suppliers paying GST at 12\% with full ITC because this would have blocked the ITC chain.

Is GST applicable on services provided to government?

Government is considered as a “person” under the GST act. Therefore, any supply of goods or services by or to government is subject to GST unless exempted.

Are government agencies exempt from GST?

Services provided by Police or security agencies of Government to PSU/private business entities are not exempt from GST. Such services are taxable supplies and the recipients are required to pay the tax under reverse charge mechanism on the amount of consideration paid to Government for such supply of services.

What is the GST for car rental?

GST Rate for Car or Vehicle Rental Services 18\% GST is applicable on renting of the motor cab if fuel cost is borne by the service recipient. Further, leasing of aircraft by scheduled airlines for scheduled operations is taxed at 5\% GST rate with input tax credit allowed for input services.

Is there GST on sale of motor vehicle?

You will generally be liable to pay GST of one-eleventh of the sale price of the vehicle. GST is not payable on the disposal of privately owned assets.

Is TDS applicable on car hire charges?

TDS on car hire charges is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1\% or 2\% (as the case may be) for payments to residents.

Which services are exempt from GST?

Exempted Goods in GST exemption list

• Food. Fruits and vegetables, cereals, meat and fish, potatoes and other edible tubers and roots, tender coconut, tea leaves, jaggery, coffee beans, ginger, turmeric, milk, curd, etc.
• Raw materials.
• Tools/Instruments.
• Miscellaneous.

What are the exempted services under GST?

GST Exemption List – For Services

• Services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government;
• Services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

How do I claim GST on a car?

You may be eligible to claim a specially-equipped motor vehicle rebate if you paid GST/HST on the purchase of a qualifying motor vehicle, or you paid GST/HST on a modification service performed on your motor vehicle. To apply for the rebate, use Form GST518, GST/HST Specially Equipped Motor Vehicle Rebate Application.

Do I have to pay GST on a private car sale?

Alberta is one of the few provinces in Canada that does not charge tax on private vehicle sales within the province – that’s private seller to private buyer. If purchasing from a dealer, auction, or other business, 5\% GST will be need to be paid on top of the sale price.

Is TDS applicable on job work after GST?

GST TDS should be deducted at 1\% of the payment made to the supplier of taxable goods or services or both. GST TDS should be deducted only if the taxable value of supply under a contract exceeds Rs. 2,50,000.

Who is liable for GST on rental of motor vehicles services?

Thus, it is very clear that in a transaction of ‘Renting of Motor Vehicles services’, if all the conditions referred here-in-above are satisfied, the liability of payment of GST @ 5\% has been casted upon the Body Corporates, as a recipient of such services.

Who is not required to pay GST on services provided under GST?

A person who is not a body corporate and opted to pay GST at rate of 5\% is not required to pay GST on providing services to a body corporate. Such body corporate has to pay GST on reverse charge basis on such services. (This rule is applicable from 1st October 2019)

Is GST applicable on fuel and service charges?

There can be a case when the customer is charged based on fuel plus service charges. In that case, GST is to be charged at a rate of 18\% on service charges. No GST is applicable on fuel part in that case. A person who is not a body corporate and opted to pay GST at rate of 5\% is not required to pay GST on providing services to a body corporate.

Can I claim GST on a hire purchase agreement?

As all components of a hire purchase agreement entered into on or after 1 July 2012 are subject to GST, you can claim one-eleventh of all components, including the credit component and any associated fees and charges that have been subject to GST under the agreement.