ITC on Vehicle purchased for providing on rent?

This discussion clarifies whether Input Tax Credit (ITC) can be claimed on vehicles purchased for a car rental business, specifically when supplying to PSUs. It confirms that if registered under GST and in the business of commercial car renting, ITC on the GST paid can be claimed in full, provided depreciation is not claimed on the tax component for Income Tax. The key distinction lies in the GST rate opted for: 12% GST allows ITC claims, while the 5% option under Notification 11/2017 CT (r) prohibits it.