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ITC of gypsy car used in Safari park

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Meet Zatakiya

21 Points Posted on 20 October 2023

Respected sir/ma'am..
Company is in business of resort. It has purchased Gypsy car so that it can let tourist visit in Safari park. It charges
GST on that as Safari charges. So can company claim ITC on gypsy car as considering transportation of passengers or it is blocked as less than 13 capacity..??

Replies (3)

Quick Summary

This discussion explores whether a resort business can claim Input Tax Credit (ITC) on Gypsy cars used for transporting tourists within a safari park. The key question is whether these vehicles qualify for ITC as passenger transport, or if they are blocked due to having less than 13 seats. The consensus leans towards the availability of ITC in this specific scenario.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 20 October 2023

In my humble opinion ITC is available in this case

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 21 October 2023

You may claim ITC

Aashok Kumar Sharma

Finance/Compliance Consultant

75642 Points Posted on 08 November 2026

Gypsy used for safari rides at a resort:
• Sec 17(5)(a) blocks ITC on motor vehicles for transport of persons (13 or fewer seats), except when used for further supply of such vehicles, transportation of passengers, or driving training.
• If the resort uses the Gypsy for safari rides (transporting guests within the park as a service, charged to guests), it's "transportation of passengers". ITC is allowed.
• If the safari is a free amenity bundled with the room (composite supply with accommodation as principal), it's still used for providing passenger transport as part of the business. AARs are divided. Charging separately strengthens the case.