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Itc credit

ITC / Input 290 views 8 replies

We are using Two cars and Three bus from two travel agents for our employees pickup and drop facility, In this Car Travel agency giving with bill 5% of GST Rate and Bus operator gives 12% of GST rate invoices.

Kindly advice us can we take the ITC for the above all invoices..

Thanks in advance

Replies (8)

Yes you can take input in both cases. The difference in tax is due to:
   1) 5% - Cab operator cannot take input pay 5% of outward supply.

    2) 12% - Cab operator can take input from services and pay Net GST.

So this has nothing to do with the Service receiver, which is your company in this case. Hence you can avail Input Tax credit on both invoices.

Thanks Jeeva Sir..

But somebody says that as per Section-17(GST) we can't awail ITC for Rent A Cab..Service... Pls explain us..

 

Dear Experts  your reply is required on urjent basis... Thanks

Dear Experts  your reply is required on urjent basis... Thanks

Sorry Mr.Suresh, you are right. Input is not availble for Rent a cab serice as cab service is not a mandatory service to be provided to the employee by the company. Hence input not allowed. 

you can not avail credit for rent a cab..but for bus service you can take as it is not covered in blocked credit..take the bill seprately for cab and bus service
Originally posted by : CA Manish Jha
you can not avail credit for rent a cab..but for bus service you can take as it is not covered in blocked credit..take the bill seprately for cab and bus service

Manish Sir Thanks alot...

Notification 11/2017 dt. 28.06.2017  " Renting of motorcab and Rental services of transport vehicles" are merged and a single word "Renting of any motor vehicle" is replaced by notification 31/2017 dt. 13.10.2017, after this notification how we apply this Section-17(GST) blocked credits. 

Because both the vehicles (car & Bus) are used for only Employees... sorry to disturb.. this is for completely understaning purpose.

Thanks in advance...

 

Dear Experts  your reply is required on urjent basis... Thanks

 


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