We are pharma manufacturer at vadodara-Gujarat. We have purchase five buses ( 56 seater) for transportation of our employee from city to our factory location. We pickup and drop our employees from Vadodara-city to factory and factory to Vadodara-city.
Can we take ITC og GST paid on purchase of BUSES ?
If any case low available pls. share me.
Pharma company can claim GST Input Tax Credit for 56-seater employee buses under Section 17(5)(a) of the CGST Act. A pharmaceutical manufacturer in Vadodara, Gujarat, inquired about the eligibility of claiming Input Tax Credit (ITC) on GST paid for purchasing 56-seater buses used to transport employees between the city and their factory. Responses indicated that ITC is permissible under Section 17(5)(a) of the CGST Act, effective from February 1, 2019, as it does not block ITC for motor vehicles with a seating capacity exceeding 13 persons. Various contributors agreed that ITC is allowable in this scenario, citing legal provisions and supporting case law. A contractor also sought clarification on ITC eligibility for vehicle purchases used in similar services. (AI Summary)
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