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GST rate from 5 to 12

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MOHIT LODHI

24 Points Posted on 22 March 2023

In the case of renting of motor vehicle (SAC 9966), the taxpayer opted the tax rate from 5% (not eligible for ITC) to 12% (eligible to claim ITC) from FY 2023–24, so can he claim the ITC on input goods held in stock and capital goods?
If yes, then through which form?

Replies (2)

Quick Summary

This discussion clarifies the implications of switching GST rates for motor vehicle rentals from 5% to 12% starting FY 2023-24. It addresses whether taxpayers can claim Input Tax Credit (ITC) on existing stock and capital goods after opting for the higher rate. The consensus is that if you previously chose the 5% rate (without ITC), you cannot claim ITC on goods already in stock or capital goods, nor can you utilise any ITC balance in your ledger.