Rent a cab service

This discussion clarifies whether a company providing rent-a-cab services and paying GST at 5% is eligible for input tax credit (ITC) on their inward supplies. The general consensus is that ITC cannot be claimed when opting for the 5% GST rate, as it's specifically blocked under Section 17(5) of the GST Act. To claim ITC, the GST rate would need to be 12%, and even then, it's restricted to inward supplies from the same line of business.