ITC of Rent a Cab @5% by Tour Opertor

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Preetam Singh Shekhawat

Preetam Singh Shekhawat (Querist)
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31 December 2019 Dear Sir, Can a tour operator take ITC of rent a cab charged @5% ?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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01 January 2020 No
Services from one tour operator to another tour operator in the same line of business are legally available as Input Tax Credit.
GST applicable for renting of motor vehicle shall be @ 5% with no ITC or 12% with ITC.

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Preetam Singh Shekhawat

Preetam Singh Shekhawat (Querist)
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02 January 2020 Thanks for reply Madam.

Can this view be taken: Tour operator services included the sight seeing and accommodation and relate services. So rent a cab services are also a part of services that is necessary for tour operator service to complete. So this can be considered as same line of business.

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CA Anita Bhadra

CA Anita Bhadra (Expert)
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03 January 2020 I am not sure whether tour operator service can be considered as same line of business of vehicle hiring

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