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Is GST paid on rent-a-cab services for furtherance of business admissibility of GST credit

Chandresh (Sr Accountant) (11 Points)

24 July 2019

We are manufacturer and for staff transportation to factory - residence and out of town for customer visit etc. for which we avail rent-a-cab services with passenger capacity in excess or less than 13. As the same is for furtherance of business only, shall we allow ITC specifically after 01.02.2019?

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 25 July 2019

In Terms of Amendment in Clause (a) to Section 17(5) of The CGST .Act , effective from 1/2/2019 , The ITC restrictions only to the extent of motor vehicle for transportation of persons having approved seating capacity of not more than 13 person (Including Driver)

So if the Vehicle seating is as per above provision of law than Credit is available.