my client is Rent a Cab provider and send cars to XYZ travel agency and charge 5% GST.
Now XYZ travel agency send those cars to ABC company and collect 5% GST from company.
my question is : XYZ travel agency is eligible to take credit of 5% GST charged in my bill. if yes, please share notification.
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ITC of Rent a Cab provider
Replies (4)
Yes ITC will be allowed as it is an exception to section 17(5) of CGST act.
Normally on services of Rent a cab the GST paid is blocked and no credit is available.
BUT since XYZ is further supplying the same services of Rent a cab,
ITC will be allowed to XYZ.
I hope this helps.
Normally on services of Rent a cab the GST paid is blocked and no credit is available.
BUT since XYZ is further supplying the same services of Rent a cab,
ITC will be allowed to XYZ.
I hope this helps.
if any notification please share
I dont think there is any notification for this since it is already clearly specified in section 17(5)
No , ...the XYZ is Travel Agent/Tour Operator, & As per Notification 1/2018 CT (R) The Tour operator is eligible to claim ITC only when Services procure from another Tour operator & Rent cab provider do no fall under the defination of Tour operator
Hence XYZ cannot claim ITC on services procured from Rent Cab Provider
Plz refer Notification 1/2018 CT (r), dt 25.1.2018
Hence XYZ cannot claim ITC on services procured from Rent Cab Provider
Plz refer Notification 1/2018 CT (r), dt 25.1.2018
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