Input tax credit

[Ashwin Bhalakiya]

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.

AI Summary

Input tax credit eligibility: hiring a motor cab denied where vehicle falls below prescribed seating-capacity, check reverse charge applicability.
Hiring a motor cab for business use does not qualify for input tax credit where the vehicle's seating capacity is below the statutory threshold; such hiring or renting of motor vehicles is excluded from ITC under section 17(5)(b)(i). Verify whether the vehicle meets the seating-capacity threshold that permits credit and whether reverse-charge obligations arise under the relevant GST rate notification.