I am rent a cab service provider. I am having 20 cars and 10 buses I am currently charging gst @5 percent with no itc after feb-19 notification can i opt charing 12 percent for bus and 5 percent for rent a cab simultaneously..??? I am providing these services to individuals/ propritor and partnership firm only

Reply— 

Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient attracts 5% GST. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken.

 In terms of Section 2(24) of the Motor Vehicle Act 1988 “motorcab” means any motor vehicle constructed or adapted to carry not more than six passengers excluding the driver for hire or reward. In the instant case the applicant is providing the services by Buses, which can accommodate more than six persons. Therefore the applicant is not engaged in providing transport services by motorcabs, rate of 5% is not applicable on renting of buses.

The services provided by way of renting of buses covered under Heading 9964 and taxable @18% GST.