GST Input RCM Paid on Vehicle on Rent

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.