Under GST, claiming Input Tax Credit (ITC) on motor vehicles used for transporting passengers is generally blocked if the approved seating capacity, including the driver, is 13 persons or less. This restriction is outlined in Section 17(5)(a) of the CGST Act 2017. However, if the vehicle's seating capacity exceeds 13 persons, including the driver, ITC may be available.
ITC on Motor Vehicle used for transportation of persons having approved seating capacity of not more than 13 persons ( including the driver ) is specifically BLOCKED under Section 17(5) clause (a) of the CGST Act 2017.