Question ID : 20868

Clarification regarding Taxability of service under Forward Charge or Reverse Charge

Recently a test Van for stamping of weighment bridge was hired from Indian Railway.
Accordingly, the D.M.E.(0&F), E.Rly., Asansol intimated to pay the following amount towards hire charge of Test van:

Particulars Amount in Rs
Hire charge of Test Train 4,18,050
GST @ 5% 20,903
Total 4,38,953

The Clarification is being required regarding
1. Whether GST is Payable under Forward charge or Reverse charge for this service

as per Sl. No. 5 of Notification No. 13/2017, Central Tax (Rates), dated 28.06.2017, services supplied by Railway (Central Government) to a business entity excluding renting of immovable property and transport of goods and passengers shall come under Reverse Charge Mechanism.
So this being renting of movable property is covered under Entry 5 and hence RCM is applicable.

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