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Itc on cab for customer

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arun

junior lecturer

63 Points Posted on 29 August 2022

hello ,

i am working in airline company and we are providing CAB to our customer of cancelled flight. can we claim itc on that CAB bill.

Replies (2)

Quick Summary

This discussion clarifies whether an airline company can claim Input Tax Credit (ITC) on cab bills provided to customers due to flight cancellations. Under Section 17(5)(b) of the CGST Act, hiring or leasing of motor vehicles is generally considered a blocked credit, meaning ITC cannot be claimed. Therefore, GST paid on such cab services is disallowed as ITC, unless the service receiver is also a provider of cab services.

prasad Nilugal

GST Practitioner & Accounts

15140 Points Posted on 29 August 2022

Hiring, renting, leasing of Motor Vechile is blocked credit under section 17(5)(b) of the CGST act, you Can not claim input tax credit.

Yogin

Assistant Manager

78 Points Posted on 31 August 2022

GST paid on rent a cab service is specifically disallowed under Section 17(5) of CGST act. Therefore, such GST paid cannot be taken as input tax credit. However, if the service receiver is also cab services provider then he can take input credit of such GST