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input tax credit on Rent a cab service

19 January 2019

is input tax credit available on Rent a cab service if vendor is charging gst on the bill and such service is for official purpose and that vendor is charging monthly bill to company?

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9 Replies

jaheer hussain (577 Points)
Replied 19 January 2019

sir that service use for business is definitely you can Claim itc

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 20 January 2019

No rent a cab services are block under 17(5) , hence cannot claim ITC

Trex Gaming_67 (243 Points)
Replied 21 January 2019

No ITC can not be claimed on Rent-a-cab, life insurance and health insurance, EXCEPT WHERE
 The Government has made it obligatory for an employer to
provide any of these services to its employees; or
 Inward supply of these services is used for making an outward

hary (CA) (116 Points)
Replied 21 January 2019

ITC is not available for rent-a-cab, health insurance and life insurance.

However, the following are exceptions, i.e., ITC is available for-

a. Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force

For example, assuming the government passes a rule for all employers to provide mandatory cab services to female staff in night shifts. ABC Ltd. hires a rent-a-cab to provide to transportation to its female staff on night shifts. Then ITC will be available to ABC Ltd. on the GST paid to the rent-a-cab service.

b. If the category is same for the inward supply and outward supply or it is a part of the mixed or composite supply

For example, ABC Travels lends out a car to XYZ Travels. Then XYZ Travels can claim ITC on the same.

Read our article on GST impact on cab services.

1 Like

Madanmohan (Advocate and Tax Consultant) (27 Points)
Replied 07 March 2019

Is there any restriction to take ITC on the basis of tax rate 5% & 12% in same line business? Kindly clarify the tax rate also... Thank you....

1 Like

Vishnu Teja (student) (36 Points)
Replied 20 May 2019

Sir A person bougt a car on his OWN i.e; the car is owned by him & registered in OLA as a cab operator, 1) Can he claim ITC ? If he is registered 2) If such person is not registered , *Can OLA claim ITC on behalf of such cab operator* ? 3) Is OLA ,allowed to claim ITC directly into its account instead of cab operator ?