ITC ON BUS PURCHASE - GIVEN ON RENT TO COMPANY FOR THEIR EMPLOYEES PICK UP AND DROP

[RAVINDRA SANCHETI]

Hello Sir

I have following query

- Assessee have purchased one Bus and one car to give on rent to different companies for their employees and guest pick up and dropping facility. They charged rent on monthly basis including per KMS basis. Need clarifications on following with reference to Notification no 11/2017, 20/2017, 31/2017 of Central Tax (Rate)

1. What should be the SAC code for rent services - 9964 passenger transport services or 9966 Rental Services of Transport Vehicle. As per me should be 9966.

2. Whether Assessee can avail ITC benefit on Bus and Car Purchase (with payment of 12% GST) If I go with SAC code 9966 then as per negative list of ITC u/s 17(5) since the credit is available in case of transportation of passengers only will it be correct to avail the credit on Rental services.

3. Whether Transport of passenger cover rental services of bus and car also, under notification no 11- SAC code 9964 clause (vi). If not what kind of services covered under this category.

4 Whether the customer to whom we are billing can avail GST credit on invoices of BUS and Car both.

AI Summary

Clarification on SAC Code 9966 for Bus and Car Rentals for Employee Transport; Mixed Views on ITC Eligibility. An individual inquired about the appropriate SAC code for rental services of a bus and car used for employee transport, and whether Input Tax Credit (ITC) can be claimed on such purchases under GST regulations. Responses clarified that the SAC code should be 9966, as the vehicles are rented out rather than used for direct passenger transport, which falls under 9964. Opinions varied on ITC eligibility; some stated it is not available for rental services, while others argued it is admissible. A query on whether customers can claim GST credit on invoices remained unanswered.