Are we eligible for GST input on RCM Paid for Vehicle on Rent for Employees transportation.
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Quick Summary
This discussion clarifies whether GST input credit is eligible for Reverse Charge Mechanism (RCM) paid on vehicles rented for employee transportation. Generally, under Section 17(5)(b)(I) of the CGST Act, input tax credit for renting or hiring motor vehicles is blocked. However, an exception exists for vehicles with a seating capacity exceeding 13 passengers (including the driver), where ITC may be admissible.
As per section 17(5)(b)(I) of the CGST Act , renting and hiring of Motor vehicle is block credit, so you Can not take input tax credit. take other opinion as well.
ITC would be admissible on leasing, renting Or hiring of a motor vehicle where the approved seating capacity is more than 13 passengers (including driver)
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