TaxTMI 
TaxTMI 
I am an employer and hiring cabs for transportation of employees. Am i eligible to take credit of such GST paid.
rent a cab credit
17 Jan 2018 
8 Replies 
1662 Views Asked by
Input tax credit on rent a cab services hinges on statutory exclusion and narrow exceptions for employer obligations and re supply.
Eligibility for input tax credit on cab services depends on the exclusion of "rent a cab" under section 17(5) and two exceptions: government notified obligatory employer services, and where the inward supply is used to make an outward taxable supply of the same category. Practitioners emphasise verifying whether the service genuinely falls within "rent a cab" and proving a business nexus; a precedent treating employee transportation as a creditable tour operator service under prior law is cited. (AI Summary)
Eligibility for input tax credit on cab services depends on the exclusion of "rent a cab" under section 17(5) and two exceptions: government notified obligatory employer services, and where the inward supply is used to make an outward taxable supply of the same category. Practitioners emphasise verifying whether the service genuinely falls within "rent a cab" and proving a business nexus; a precedent treating employee transportation as a creditable tour operator service under prior law is cited. (AI Summary)