Input GST on motar vehicle

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This discussion clarifies the Goods and Services Tax (GST) implications for motor vehicle rentals, particularly for passenger transport services. It addresses whether input tax credit is available for 7-seater yellow board vehicles used for business and highlights a discrepancy in GST rates shown online for services including fuel (12%) versus those excluding fuel (18%). The query seeks further clarification on any recent notifications regarding these rates.

devendra

devendra (Querist)
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01 July 2023 hello experts,
renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient and charging 12% of GST. HSN 9966
Can we take a input tax on vehicle (7seater and yellow board )purchased which is using the business purpose for passanger transport.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 July 2023 Charging 12% of GST. HSN 9966 you Can take a input tax on vehicle (7seater and yellow board )purchased which is using the business purpose for passanger transport.

devendra

devendra (Querist)
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01 July 2023 Thank you Sir. As per the notification 2017 GST Rate for the renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient ( with full Input Tax) is 12%. But in the Current website GST rate is showing 18% ( for full ITC ). Kindly suggest if any further notification for the GST rate for this service. Only GST on renting of vehicle Goods Carriage ( Included fuel cost) showing 12% in the website.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 July 2023 Renting of vehicles without fuel is 18%.

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