I have query related to Input tax credit, we intend to hire a Cab for our Marketing manager for area survey (i.e., furtherance of business) and doing contract with Cab provider.
We would like to know whether GST charge by service provider will be eligible for input tax credit.????? Please advise.
Eligibility of Input Tax Credit on GST for Cab Services Limited by Section 17(5)(b)(i) of CGST Act 2017 A query was raised regarding the eligibility of claiming input tax credit (ITC) on GST charged by a cab service provider for business purposes. The consensus among the respondents was that ITC is not allowed for hiring motor vehicles with a seating capacity of less than 13 persons. References were made to the Authority for Advance Ruling in Maharashtra and section 17(5)(b)(i) of the CGST Act, 2017. Additionally, it was suggested to check potential liabilities under the Reverse Charge Mechanism (RCM) as per Notification No. 13/2017-Central Tax (Rate). (AI Summary)
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