Itc on cab for customer

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.