JODHPUR VIDYUT VITRAN NIGAM LTD.

Corporate Identity Number (CIN) –U40109RJ2000SGC016483

Regd. Office: New Power House, Jodhpur- 342003
Phone No: 0291-2742362 : Fax No: 0291-5106031
E-mail: aobudgetjodhpur@gmail.com Web site : energy.rajasthan.gov.in/jdvvnl
No.: JdVVNL /CCOA/CAO (B&R)/AO (Taxation)/F. / D. Date.

GST Circular
Sub:- Payment of GST under RCM in case of service received (on or after 1st Oct.,
2019) on account of renting of motor vehicle designed to carry passenger.

Government of India, Ministry of Finance, vide notification no. 22/2019 Central Tax
(Rate) Dated 30th September 2019 has further amended Notification No. 13/2017 Central
Tax (Rate) dated 28th June 2017 by inserting following entry at serial no. 15 and added new
services to RCM where the recipient of service has to pay Tax under RCM.

S. Category of supply of services Supplier of Services

Recipient of Services
No. who has to pay GST
under RCM
15. Services provided by way of renting Any person other Any Body Corporate
of a motor vehicle provided to a Body than a Body located in the
Corporate* Corporate*, paying taxable territory
Central Tax @ 2.5%
on renting of motor
vehicle with input
Tax credit only of
input services in the
same business.

Therefore w.e.f. 1st October, 2019 GST is required to be paid under Reverse Charge
Mechanism {Section 9(3) of CGST Act, 2017}, by JdVVNL @5% (25% CGST -2.5% SGST of
5% IGST as the case may be) on the services received on account of renting of any Motor
Vehicle designed to carry passengers where the cost of fuel is included in the consideration.
This is applicable only in case where the said service is received from registered person
who is charging GST @ 5% in bills and such person is not a body corporate. For this
purpose “Body Corporate” has the same meaning as meaning as assign to it in clause (11)
of Section 2 of Indian Companies Act, 2013. Further as already circulated that tax deduction
(GST-TDS) is not required to be made under GST where tax is to be paid on reverse charge
basis. It is to be noted that the service provider has to mention on its bill that the tax is to
be paid by the recipient of service under RCM and no tax is payable by the service provider
under forward charge.
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Example: Suppose JdVVNL receives a bill from Contrator “A” who is registered under GST
and not a body corporate, for the services received on or after 01.10.2019 on account of
renting of vehicle to carry passengers, charging GST @ 5% therein i.e. Taxable value Rs.
100+GST amount Rs. 5= Total Invoice Value is Rs. 105. GST amount charged in bill @ 5%
i.e., Rs. 5 will be paid by JdVVNL directly to GST Department under reverse charge
provisions (Through GST portal).

Therefore, it is advised to study the above provisions carefully and ensure

compliance of the same with immediate effect.

Accounts Officer (Taxation)

Jodhpur Discom, Jodhpur
Copy to the following for information and necessary action:-
1. The Chief Controller of Accounts, , JdVVNL, Jodhpur.
2. The Chief Accounts Officer ( ), JdVVNL, …………………...
3. The Sr. Accounts Officer ( ) Jodhpur Discom, ……………………
4. The Accounts Officer ( ) Jodhpur Discom, ………………….

Accounts Officer (Taxation)

Jodhpur Discom, Jodhpur

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