TaxTMI 
TaxTMI 
Hello Everyone,
I run a travel agency and I rent out buses. The SAC of my service will be 996601. So, could I claim ITC while buying a new Bus and at what rate should I charge GST to customers?
Please help
ITC Claim on SAC 996601
11 May 2025 
3 Replies 
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Input Tax Credit eligibility on bus purchases for taxable rental services; charge the standard GST rate to customers.
Input Tax Credit is available on buses acquired as capital goods when those buses are used to provide taxable rental services under SAC 996601; ITC must be adjusted if any use is for exempt or non business purposes and supported by tax invoices and records. Rental services under SAC 996601 are generally subject to the standard GST rate for such services, but exemptions or different treatments may apply for specified passenger categories and the inclusion of fuel or choice of with/without driver can affect rate application and ITC entitlement. (AI Summary)
Input Tax Credit is available on buses acquired as capital goods when those buses are used to provide taxable rental services under SAC 996601; ITC must be adjusted if any use is for exempt or non business purposes and supported by tax invoices and records. Rental services under SAC 996601 are generally subject to the standard GST rate for such services, but exemptions or different treatments may apply for specified passenger categories and the inclusion of fuel or choice of with/without driver can affect rate application and ITC entitlement. (AI Summary)