GST rate from 5 to 12

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.