ITC is available in respect of tax paid on hiring of vehicles having seating capacity of more than 13 people for transport of employees

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Last updated: 15 September 2020
Quick Summary
This ruling clarifies that Input Tax Credit (ITC) is available for GST paid on hiring motor vehicles with a seating capacity of more than 13 people for transporting employees. This is because the restriction on ITC under Section 17(5)(b)(i) of the CGST Act, 2017, specifically applies to vehicles with a seating capacity of 13 or fewer persons. The nominal amount recovered from employees for this service is not subject to GST as it's considered part of the employment contract.

Court :
Maharashtra AAR

Brief :

Citation :
NO.GST-ARA-23/2019-20/B-46

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1 Year PLAN - Rs.1999
1799
(Excl. of GST ₹323)

2 Years PLAN - Rs.3499
3149
(Excl. of GST ₹566)

BEST VALUE
3 Years PLAN - Rs.4999
4499
(Excl. of GST ₹809)

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