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
18 May 2020 
4 Replies 
11265 Views Asked by
Input tax credit on cab hire allowed where vehicle seating exceeds the permitted limit and hire is for business use.
ITC on hiring or renting motor vehicles is available only for vehicles whose approved seating capacity exceeds the specified passenger threshold and when the service is used in the furtherance of business; claimants must obtain proper invoices from the supplier and may verify seating capacity via the registration certificate or physical inspection. Employer obligations under law to provide transport and use of the service for business purposes further support eligibility, subject to the statutory compliance requirements. (AI Summary)
ITC on hiring or renting motor vehicles is available only for vehicles whose approved seating capacity exceeds the specified passenger threshold and when the service is used in the furtherance of business; claimants must obtain proper invoices from the supplier and may verify seating capacity via the registration certificate or physical inspection. Employer obligations under law to provide transport and use of the service for business purposes further support eligibility, subject to the statutory compliance requirements. (AI Summary)