rent a cab credit

[nirali pandya]

I am an employer and hiring cabs for transportation of employees. Am i eligible to take credit of such GST paid.

AI Summary

Employer Seeks GST Credit for Employee Cab Services; Section 17(5) CGST Act Generally Restricts Input Tax Credit. An employer inquires about the eligibility for claiming GST credit on cab services hired for employee transportation. Responses indicate that input tax credit (ITC) is generally not available for rent-a-cab services, as they fall under the negative list per section 17(5) of the CGST Act. However, exceptions exist if services are obligatory under law or used for making outward taxable supplies. The discussion touches on distinctions between hiring and renting, and the definition of 'cab' under different acts. A referenced case suggests that transportation for employees might be considered a business expense, allowing credit.