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Rent a Cab And Food

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T K Vijith

143 Points Posted on 16 March 2020

We have received rent a cab invoice for Rs 50K we are liable to pay RCM..? and how to claim the same?

And also we have received invoice for Food meals which we providing to our employees every month... can we claim ITC on this invoice

please help us

Thanks
Vijith T K

Replies (5)

Quick Summary

This discussion clarifies GST implications for businesses. It addresses whether Reverse Charge Mechanism (RCM) applies to cab rental invoices and how to claim Input Tax Credit (ITC) for them. It also explains that ITC on food provided to employees is generally not claimable due to restrictions under Section 17(5) of the GST Act, and advises on reversing any incorrectly reflected ITC.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 16 March 2020

2. ITC not available for food to employees...

1. Yes... Rcm applicable for service received from Cab. But, more details required for correct understanding.

T K Vijith

143 Points Posted on 16 March 2020

We are providing cab to our employees to reach their home.. example Bus...

Food invoice ITC will be reflecting in GSTR 2 A

How to reverse that food invoice ITC...

Pankaj Rawat

GST Practitioner

55067 Points Posted on 16 March 2020

Dear TK

RCM is applicable only if the Supplier (Cab owner) is not a body corporate & Receptient (you) is Body corporate.
And Supplier is paying tax on FC @ 5% with limited ITC. (Refer Notification 22/2018 CT (r))

For food meal cannot claim ITC as it's block u/s 17(5)