ITC for vehicle hire for pickup drop employee

[Harshit Gandhi]

Can we get itc on vehicle hire for pickup drop employee

AI Summary

Eligibility for ITC on Vehicle Hire Services Hinges on Free Service or Employee Charge Under Section 17(5)(b)(iii). A discussion on a forum addressed the eligibility of claiming Input Tax Credit (ITC) under the Goods and Services Tax (GST) for vehicle hire services used for employee pickup and drop. It was clarified that if the service is provided free of charge, ITC can be claimed as it is considered a business expense. However, if employees are charged, it is deemed for personal use, making ITC inadmissible under Section 17(5)(b)(iii). An amendment allowing ITC for such services was mentioned, pending notification by the CBIC, especially if legally required by the employer.