Notification no. 22/2019 introduced three new entries to RCM.
Three new entries to the RCM list in GST namely renting of a motor vehicle, transfer of copyright by an public_profile and lending of securities. Notification no 22/2019 CTR dated 30th sept 2019 has amended 13/2017. These services are.
- Copyright by an public_profile entry no. 9A
- Renting of a motor vehicle, Entry no. 15
- Services of lending of securities Entry no. 16
Renting of motor vehicle will have the most widespread impact. This entry is applicable subject to the following conditions.
- It is provided by a non-corporate person.
- It is provided to a corporate person.
- It is provided by a person who was paying tax @5%
The renting of motor vehicles is liable to tax @5% with limited ITC. They can avail full ITC on payment of tax @12%. This RCM is applicable only on those paying tax at 5%.
These entries are introduced in notification no. 13/2017. They will be liable for RCM from 1st October 2019. You can access the updated list of RCM at this link.