Multipal Business in Single GST input use

[KS Bhat]

Sir/Madam

Mr A having Single GST number (regular)

Runs two type of Business

1. Own vehicale (Car ) renting Service

He is not collecting GST on renting and hiring service instead it will be dealcred as RCM nature and service receiver will pay the GST

2. Condiments Shop

Input of car (Yello Board) purchase is also used in total tax liability of business

Is this correct ?

Can he take input of car purchase while discharging Shop tax liability ?

 

AI Summary

Input tax credit restriction: ITC for vehicles used in supplies taxed under reverse charge cannot be claimed, affecting cross-utilisation.
A single GST-registered taxpayer supplying car rentals under the Reverse Charge Mechanism and operating a condiments shop cannot generally claim input tax credit on a motor vehicle purchased for the rental service because Section 17(5)(a) blocks credit for motor vehicles except in specified uses, and supplies liable under RCM are treated as exempt for the supplier under Section 17(3) and Section 17(2), with Rule 42 requiring denial or apportionment of ITC. If the supplier charges outward tax instead of using RCM, ITC eligibility and utilisation across businesses may be possible subject to apportionment rules.