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ITC Credit

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satender

non

88 Points Posted on 04 October 2020

We are a company and providing bus (Cab) Service to our employee (Permant & off role) to come and go to office and home. So then in this case can we availed input Gst credit in GStR 3B. Whether Travel agent is charging Gst on his bills.

Replies (3)

Quick Summary

This discussion clarifies whether a company can claim Input Tax Credit (ITC) for GST paid on bus services provided to employees. It explains that if the bus service provider is an individual and the company is a body corporate, Reverse Charge Mechanism (RCM) may apply. The availability of ITC depends on whether the supplier opted for the 5% (without ITC) or 12% (with ITC) GST rate, and if the bus capacity exceeds 13 seats.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 06 October 2020

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

satender

non

88 Points Posted on 06 October 2020

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

Pankaj Rawat

GST Practitioner

29904 Points Posted on 07 October 2020

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.