Pankaj Rawat (GST Practitioner) 22 June 2020
*Employer is not entitled for ITC on GST paid on leasing and hiring motor vehicles for transportation of its employees if the same is not obligatory under any law : Says AAR, Himachal Pradesh*
Such kind of restriction imposed by section 17(5)(b) and now confirmed by AAR, might demotivate employers for providing voluntary transportation (i.e. not required under any law) to its employees.
*PRASAR BHARTI BROADCASTING CORPORATION OF INDIA*
*(AAR, Himachal Pradesh)*