A Vehicle operator has a 50 seater bus, and has a contract with a company for pick up and drop of employees of company to factory in the 50 seater bus,
He levies 12% GST can company get ITC on the Charges paid to the vehicle operator. SAC code 996601
issue: ITC eligibility under current law and post amendment 01/02/2019
Can companies claim GST Input Tax Credit for employee transport using a 50-seater bus under Section 17(5)? A discussion on a forum addresses whether a company can claim Input Tax Credit (ITC) on GST paid for employee transportation services using a 50-seater bus. The primary question is whether this service falls under the 'rent-a-cab' category, which would disallow ITC under Section 17(5) of the GST Act. Some participants argue that ITC is permissible since the service doesn't qualify as 'rent-a-cab' and isn't obligatory for employers. A Haryana AAR ruling is mentioned, suggesting vehicles carrying passengers might be considered 'rent-a-cab,' affecting ITC eligibility. The forum also discusses if services provided free or at nominal cost to employees impact ITC claims. (AI Summary)
TaxTMI 
TaxTMI 
