TaxTMI 
TaxTMI 
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,
Credit of GST on Car Rent
23 Aug 2017 
7 Replies 
12583 Views Asked by
Input tax credit on hired motor vehicles restricted; credit available only when vehicle use meets specified statutory exclusions.
Eligibility for input tax credit on GST paid for hired motor vehicles hinges on statutory exclusions: credit is generally disallowed for motor vehicles and conveyances except where they are used for further supply of such vehicles, transportation of passengers, imparting training on driving/flying/navigating, or transportation of goods. A hired car service is distinct from purchase; ITC is conditional and available only if the service use satisfies those exclusions. (AI Summary)
Eligibility for input tax credit on GST paid for hired motor vehicles hinges on statutory exclusions: credit is generally disallowed for motor vehicles and conveyances except where they are used for further supply of such vehicles, transportation of passengers, imparting training on driving/flying/navigating, or transportation of goods. A hired car service is distinct from purchase; ITC is conditional and available only if the service use satisfies those exclusions. (AI Summary)