Rent a cab service

Company is providing rent a cab services paying GST @ 5 %. Are they eligible to take input credit on inward supplies and services?
Replies (6)
Quick Summary
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.

You can not claim ITC on Inward supplies and services (Pay GST @ 5%)
ITC on renting a cab is specifically blocked u/s 17(5) of GST Act.
If you want to claim ITC, GST rate is 12%
Since the Company has opted to pay tax @ 5%, they are not eligible to claim ITC on their inward supplies.
In term of Notification 11/2017 CT , GST 5% on FC is available from same line business.

Means you can claim ITC only on inward supply from same line business

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