Rent a cab gst input

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This discussion clarifies the rules around claiming GST input tax credit (ITC) for rent-a-cab services. While generally ITC is not available for such services, an exception exists if the service is used for making an outward taxable supply or as part of a taxable composite or mixed supply. If your business provides mixed services sold for a single price, you may be able to claim the ITC.

Birender Singh

Birender Singh (Querist)
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23 October 2020 Can we claim rent a cab gst input if sevice is furtherence of business (even management)?

Udaya Chandran

Udaya Chandran (Expert)
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24 October 2020 ITC not available for rent-a-cab services.

Birender Singh

Birender Singh (Querist)
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24 October 2020 But furtherence of business available

Udaya Chandran

Udaya Chandran (Expert)
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28 October 2020 Please note the below proviso:

the input tax credit in respect of such goods or services or both shall
be available where an inward supply of such goods or services or both is used by a
registered person for making an outward taxable supply of the same category of goods or
services or both or as an element of a taxable composite or mixed supply

Birender Singh

Birender Singh (Querist)
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28 October 2020 We are providing mixed service so can we take?

Udaya Chandran

Udaya Chandran (Expert)
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28 October 2020 Yes, you can take it if is mixed supply provided that the mixed supplies are conjunctional and sold for a single price.

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