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Gst for renting of vehicle

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harsh tiwari

7 Points Posted on 27 February 2021

I am registered under gst as regular tax payer.i am providing vehicle (car) with fuel and driver to department of railway on contract basis.they tell me to charge gst @ 5 %and I am paying tax.is iam liable to take itc? of goods purchased for my office? iam also providing other contract services to dept. of railway.like some small construction work so can I avail the itc on cement,sariya purchased for that?

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Quick Summary

This discussion clarifies GST on vehicle rentals provided to the Indian Railways on a contract basis, including fuel and driver. It addresses whether Input Tax Credit (ITC) can be claimed on goods purchased for the office and materials like cement and rebar used for other contract services, such as small construction works for the railways. The key takeaway is that ITC for vehicle rentals is generally blocked credit under Section 17(5) of the CGST Act 2017.