10 - Heading 9966 (Rental services of transport vehicles [1][with operators]
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Description of Service (3) |
Rate % (4) |
Condition (5) |
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[2][(i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle) has not been taken. [Please refer to Explanation no. (iv) or
[3][Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken. Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ central tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.] |
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[i][9] |
-] |
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[ii][(ia) Renting of goods carriage where the cost of fuel is included in the consideration charged from the service recipient. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business has not been taken: [Please refer to Explanation no. (iv)] Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5% shall not be taken. Or |
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9 |
-] |
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[4][(ii) Time charter of vessels for transport of goods. |
2.5 |
Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) has not been taken [Please refer to Explanation no. (iv)] |
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[5][(iii) Rental services of transport vehicles with [6][ ***] operators, other than (i) [7][,(ia)] and (ii) above. |
9 |
-] |
[2] Substituted by Notification No. 31/2017-Central Tax (Rate) dt. 13-10-2017. Earlier
2) Substituted by Notification No. 20/2017-Central Tax (Rate) dt 22-08-2017 read as
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(i) Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] OR |
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6 |
-] |
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1) Inserted by Notification No. 11/2017-Central Tax (Rate) dt. 28-06-2017 wef 01-07-2017 read as
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(i) Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] |
[5] Substituted by Notification No. 01/2018-Central Tax (Rate) dt. 25-01-2018. Earlier inserted by Notification No. 11/2017-Central Tax (Rate) dt. 28-06-2017 wef 01-07-2017 as
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(ii) Rental services of transport vehicles with or without operators, other than (i) above. |
9 |
- |
[ii] Substituted by N No. 15/2025-CTR wef 22-09-2025. Earlier inserted by N No. 03/2022-CTR dt 13-07-2022 wef 18-07-2022.
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(ia) Renting of goods carriage where the cost of fuel is included in the consideration charged from the service recipient. |
6 |
-] |