Important Keyword: Notification 29/2019 UTGST, RCM vehicle renting GST, motor vehicle GST reverse charge, Union Territory GST RCM, body corporate GST liability, GST on cab services 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. 29/2019 - Union Territory Tax (Rate): To amend notification No. 13/ 2017- Union Territory 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 7 of the Union Territory Goods and Services Tax Act, 2017 (14 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.13/2017- Union Territory 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. 704(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, for serial number 15 and the entries relating thereto, the following shall be substituted, namely: -
| (1) | (2) | (3) | (4) |
| “15 | 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 union territory tax at the rate of 6 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. 13/2017 - Union Territory Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 704 (E), dated the 28th June, 2017 and was last amended by notification No.22/2019- Union Territory Tax (Rate), dated the 30th September, 2019 vide number G.S.R. 738(E), dated the 30th September, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 29/2019 - Union Territory Tax (Rate)
Q1: What is Notification No. 29/2019 - Union Territory Tax (Rate)?
Answer:
It amends GST rules to apply Reverse Charge Mechanism on motor vehicle renting services supplied to body corporates.
Q2: Who must pay GST under this notification?
Answer:
The body corporate receiving the service must pay GST instead of the vendor.
Q3: What services are covered?
Answer:
Renting of motor vehicles designed to carry passengers where fuel cost is included.
Q4: If the vendor charges GST normally, does RCM apply?
Answer:
No.
RCM applies only when supplier does not charge GST at 6% UTGST.
Q5: Does it apply to proprietors or individuals?
Answer:
Yes.
If supplier is not a body corporate, RCM applies.
Q6: Does it apply to companies supplying vehicles?
Answer:
No.
If supplier is a company, normal GST applies, not RCM.
Q7: How much GST must be paid?
Answer:
6% UTGST + 6% CGST (Total 12%).
Q8: Can ITC be claimed on RCM tax paid?
Answer:
Yes 👍
Input Tax Credit is allowed if used for business.
Q9: Do we need self-invoice?
Answer:
Yes.
RCM requires self-invoice + payment voucher.
Q10: Which return should show this tax?
Answer:
GSTR-3B → RCM section
ITC claimed later
👉 Need help? Try Finodha GST Compliance:
https://finodha.in/gst-compliance/
Q11: Does it apply in Union Territories only?
Answer:
Yes, for UTGST areas like Chandigarh, Lakshadweep, Andaman etc.
CGST/SGST rules apply in states.
Q12: What if fuel is charged separately?
Answer:
Then conditions may change. RCM applies mainly when fuel included in consideration.
Q13: Does it apply to employee reimbursement?
Answer:
No. Only service contracts covered.
Q14: How can startups manage this?
Answer:
Maintain vendor classification and automate returns.
Start with Finodha GST Registration:
https://finodha.in/online-gst-registration/
Q15: What happens if GST not paid under RCM?
Answer:
Penalty + interest + ITC disallowed.
Better stay compliant ⚠️
Download PDF: Notification No. 29/2019 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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