ITC on Rent of Car used by Driving School for Imparting Knowledge

This discussion explores whether a registered dealer can claim Input Tax Credit (ITC) on a car rented for use by a driving school to impart knowledge. The key question is whether this falls under blocked credits as per Section 17(5) of the GST Act. It is suggested that if the dealer charges GST on the driving classes provided and the outward service is taxable (at 18%), then ITC on the car rental can be availed, as the car's use for training is an exception to Section 17(5) when furthering business.