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)

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

Udaya Chandran

Udaya Chandran (Expert)

24 October 2020 ITC not available for rent-a-cab services.

Birender Singh

Birender Singh (Querist)

24 October 2020 But furtherence of business available

Udaya Chandran

Udaya Chandran (Expert)

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)

28 October 2020 We are providing mixed service so can we take?

Udaya Chandran

Udaya Chandran (Expert)

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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