RCM on Rent a cab

Sir,
There is no confusion, if comma after body corporate is considered. Any person other than a body corporate, who is getting vehicles by paying 5% GST with ITC from supplier in the same line of business and further supplying cabs to body corporate is eligible for RCM scheme under Notification 13/2017-CTR as amended by 22/2019-CTR. Unless correction is made to the notification, it appears individual owners of cabs supplying cabs to body corporate are not covered. Please note that only cabs taken from those in the same line of business are covered for RCM purpose though the intention is to cover the individual owners also.
It also means whether body corporate supplier is paying 5% GST or 12% GST, he is not covered for RCM purpose.


Further, learned author says 12% GST is of no avail now. I am afraid, it is not correct interpretation. An individual can still pay 12% GST by availing inputs on all supplies of goods and services by him. However, such an individual paying 12% GST is not covered for RCM purpose.

I agree with learned author's view that an individual getting vehicle by paying 5% to further rent out to a body corporate, will be not in a position to use 5% ITC and it becomes a cost to him.

rrkothapally rrkothapally 14/10/2019