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Gst for tour operatprs

Salan Mani (Director) (21 Points)

31 August 2018

Dear Friends,

I am Tour Operator in Kerala, I have some doubts in GST.

We are paying 5% GST on total value of the business.

Can we take the input, if we are purchasing the car for transporting the passenger for Tourism business.

Car will be registered under the company name.

Some site shows it is possible, and some shows not possible, Please clarify.

And some Tour Operators paying 18% GST and availing all credits from hotels, expenses, etc.

Can some suggest which will be better for a Tour Operators with own Cars.

Please help.

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mohammad (article assistant) (123 Points)
Replied 06 September 2018

yes credit will be available as per sec 17(5) of CGST act blocked credit specifies if the motor vehicle is used for providing transportation of passenger as u are a tour operator and car will be used for furtherance of service. please make sure if u are taking credit of GST paid on purchase of motor vehicle that portaion of GST cannot be used for claimming depreciation as per sec 32 of income tax act 1961. I.E if u have purchased a car for say Its verna for an humping amount of 24 lakh and u paid 1 lakh GST on it though the total consideration is 25 lakhs paid by u hence u can utilised this 1 lakh in forthcoming 5 years as input as GST Input and u can't take into conisderation all 25 lakhs as Assets in your balance sheet for claiming depreciation for this only 24 lakhs can be considered..