Bus operators can avail ITC on rent paid towards hiring of buses

Last updated: 07 January 2023
Quick Summary
The Chhattisgarh Authority for Advance Ruling (AAR) has ruled that bus operators can claim Input Tax Credit (ITC) on the rent paid for hiring buses. This applies when the rental service provider charges GST at 18%. However, operators must ensure they meet the conditions stipulated in Sections 16 and 17 of the CGST Act, 2017, regarding the eligibility and restrictions for claiming ITC.

Court :
AAR, Chhattisgarh

Brief :
The AAR, Chhattisgarh in the matter of M/s. Abhay Singh Gill [Advance Ruling No. STC/AAR/07/2021 dated November 25, 2021] has ruled that a bus operator is entitled to avail Input Tax Credit ("ITC") on the rent bill issued by the service provider, who provides buses on rent charging Goods and Services Tax ("GST") at the rate of 18%, subject to fulfilment of conditions stipulated under Section 16 read with Section 17 of the Central Goods and Services Tax Act, 2017 ("the CGST Act").

Citation :
Advance Ruling No. STC/AAR/07/2021 dated November 25, 2021

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Bimal Jain
Published in GST
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