TaxTMI 
TaxTMI 
TaxTMI 
Whether the input credit paid on taking cabs on hire for the transportation of its employees by companies is eligible for ITC in the Company's hands w.e.f. 01.02.2019? since the word rent a cab is removed from Blocked credit u/s 17(5) in the CGST amendment act 2018 ? Kindly clarify
Rent a cab service w.e.f 01.02.2019
Mohideen A
ITC Eligibility for Employee Transport Cabs: Requirements and Conditions Under GST Post-2018 CGST Amendment A discussion forum addressed the eligibility of Input Tax Credit (ITC) for companies hiring cabs for employee transportation under the Goods and Services Tax (GST) framework, effective from February 1, 2019. The query focused on whether ITC is available following the removal of 'rent a cab' from blocked credits in the CGST amendment of 2018. Responses clarified that ITC is permissible for vehicles with more than 13 seats if used for business purposes and if the employer is legally obligated to provide such services. Verification of seating capacity is necessary, and compliance with invoicing requirements is essential. (AI Summary)