My Client is giving Buses on Rent. Now at what rate GST should be charged. So that My Client take Input Credit of his purchase as well as the party taking bus on rent can take credit of gst paid to my client. There is a contract of renting of buses with companies. Companies uses buses for employee transportation. Please suggest Rate and SAC code. Thanks

Reply— Renting of buses is covered under SAC code 9966 and rate of GST is as follows—

1) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient— 12% GST with ITC or 5% GST without ITC.

2) Rental services of transport vehicles with or without operators, other than (1) — 18% GST with ITC

As per ruling pronounced by AAR Haryana in the matter of YKK India Private Limited dated 11.07.2018, ITC is not available on buses/ cars hired for Transportation of employees.