Credit of GST on Car Rent

[Murari Agrawal]

We have taken a car on monthly hire charges for use of factory. Hire charges include Fuel Charges & driver's salary. The Service Provider is unregistered. Under which SAC No. reverse GST is payable and whether we can take credit of such reverse payment. Thanks,

AI Summary

Eligibility for ITC on Unregistered Car Rental Services Under GST: Section 17(5) Clarifications and SAC 9966 Application A discussion on a forum addressed the issue of claiming input tax credit (ITC) on Goods and Services Tax (GST) for car rental services used in a factory. The service provider is unregistered, raising questions about the applicable SAC code for reverse charge GST and ITC eligibility. It was clarified that while SAC 9966 applies, ITC is generally not available for motor vehicles unless used for specific purposes outlined in Section 17(5) of the CGST Act, 2017, such as further supply, passenger transport, training, or goods transportation. The querist was advised to verify if they meet these conditions for ITC eligibility.