Important Keyword: IGST Notification 28/2019, renting motor vehicle RCM, IGST reverse charge services, GST cab services RCM, vehicle hire GST India,
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Table of Contents
[F. No.354/204/2019 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 31st December, 2019
Notification No. 28/2019 - Integrated Tax (Rate): To amend notification No. 10/ 2017- Integrated Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019.
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GSR (E).- In exercise of the powers conferred by sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.10/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 685(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, for serial number 17 and the entries relating thereto, the following shall be substituted, namely: -
| (1) | (2) | (3) | (4) |
| “17 | Services provided 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, provided to a body corporate. | Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging integrated tax at the rate of 12 per cent. to the service recipient | Any body corporate located in the taxable territory.”. |
(Ruchi Bisht)
Under Secretary to the
Government of India
Note: -The principal notification No. 10/2017 - Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 685 (E), dated the 28th June, 2017 and was last amended by notification No. 21/2019 - Integrated Tax (Rate), dated the 30th September, 2019 vide number G.S.R. 736(E), dated the 30th September, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 28/2019 - Integrated Tax (Rate)
Q1: What is Notification No. 28/2019 – Integrated Tax (Rate)?
Answer:
It amends Notification No. 10/2017 – Integrated Tax (Rate) to notify renting of motor vehicles under RCM in specified cases, effective 31 December 2019 notfctn-28-2019-igst-rate-engli….
Q2: From which date is this notification applicable?
Answer:
The notification is applicable from 31 December 2019.
Q3: Which service is covered under RCM by this notification?
Answer:
Renting of motor vehicles designed to carry passengers, where fuel cost is included.
Q4: Who is liable to pay IGST under this RCM entry?
Answer:
The body corporate receiving the service is liable to pay IGST under RCM.
Q5: Who is the supplier under this notification?
Answer:
Any supplier other than a body corporate (e.g., proprietors, partnerships).
Q6: Is RCM applicable in all cases of vehicle hiring?
Answer:
No ❌.
RCM applies only when the supplier does not charge IGST @ 12%.
Q7: What if the supplier charges IGST @ 12%?
Answer:
Then RCM does not apply, and GST is paid under forward charge.
Q8: Can you explain with a real-life example?
Answer:
📌 Example:
A private limited company hires cars with drivers from a sole proprietor cab operator.
Fuel cost included
Supplier does not charge 12% IGST
👉 Company must pay IGST under RCM.
Q9: Is ITC available on IGST paid under RCM?
Answer:
Yes ✅.
ITC can be claimed subject to Section 16 of CGST Act.
Q10: Where should RCM tax be reported in GST returns?
Answer:
GSTR-3B under RCM liability
Reflected in GSTR-2B for ITC
👉 File correctly with Finodha GST Return Filing
🔗 https://finodha.in/gst-return-filing/
Q11: Does this apply to individuals hiring vehicles?
Answer:
No ❌.
RCM applies only when the recipient is a body corporate.
Q12: Does this apply to electric vehicles or buses?
Answer:
Only if they qualify as motor vehicles designed to carry passengers and meet conditions.
Q13: Is this amendment based on GST Council recommendation?
Answer:
Yes ✅.
It was recommended in the 38th GST Council Meeting (18.12.2019) notfctn-28-2019-igst-rate-engli….
Q14: Does this impact GST registration?
Answer:
Indirectly.
RCM liability requires active GST registration.
👉 Check or apply via Finodha GST Registration
🔗 https://finodha.in/online-gst-registration/
Q15: Who should carefully review Notification No. 28/2019 – Integrated Tax (Rate)?
Answer:
Companies hiring vehicles
Transport vendors
GST consultants
Corporate finance teams
👉 Get expert support from Finodha GST Experts
🔗 https://finodha.in/gst-compliance/
Conclusion🚀:
Notification No. 28/2019 – Integrated Tax (Rate) significantly impacts how vehicle hiring services are taxed under IGST. Corporates must ensure RCM compliance, timely payment, and correct return reporting to avoid penalties.
Download PDF: Notification No. 28/2019 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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