ITC Credit

Kindly clarify ...Are you hiring bus service & whether the bus service provider is Proprietorship Firm (Individual) ????

Bus service provider is proprietor and we are hiring the service from traveler.

As per Notification 22/2019 CT (r) , Services provided by way of renting of motor vehicle where the Supplier is individual & Recepeint is Body corporate it is cover under Section 9(3) of CGST Act & Receptient is liable do RCM .

Note : RCM is applicable only if supplier has opted to pay GST @ 5%(without ITC) on FC.
If the Supplier has opted to pay GST @ 12% (with ITC) , then Receptient can claim ITC on same but subject to conditions prescribed in Section 17(5).

Section 17(5) , if seating capacity more than 13 person the ITC is available.