Dear Experts..
We are doing Travel business ( Car , Van and Buses).. One of my client asks If we collect 12% on Car they can't take ITC But Buses they can claim ITC and they given below details to me..
As per Section 17(5) of the CGST Act, ITC for “rent a cab” is not allowed, except when the customers are required to provide cab facility to their employees under any statute.
The term “cab” is not defined in GST Act. By borrowing the definitions from MV act, it would cover motor cab (upt 6 passengers) and maxi cab (upto 12 passengers). So GST paid on any other vehicles (like buses, vans with more than 12 passenger capacity) would be entitled for credit for the customers of TRANSPORT SERVICE PROVIDER(TRAVELS) .
Pls reply on this and thanks in advance
CAclubindia
