https://www.taxtmi.com/caselaws?id=417988 AAR Maharashtra ruled that the applicant is entitled to Input Tax Credit (ITC) on GST paid under Reverse Charge Mechanism for hiring 49-seater buses for employee transportation. The authority held that Section 17(5) of GST Act 2017, which previously barred ITC on passenger transport vehicles, was amended effective 01.02.2019 to allow ITC on leasing/renting of motor vehicles with seating capacity exceeding 13 persons including driver. Since the bus service was used for business purposes and had approved seating capacity above the threshold, ITC restriction under Section 17(5) was not applicable. The applicant became eligible for ITC from 01.02.2019 onwards. en-us Tue, 01 Feb 2022 00:00:00 +0530 Tue, 01 Apr 2025 13:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=417988 AAR Maharashtra ruled that the applicant is entitled to Input Tax Credit (ITC) on GST paid under Reverse Charge Mechanism for hiring 49-seater buses for employee transportation. The authority held that Section 17(5) of GST Act 2017, which previously barred ITC on passenger transport vehicles, was amended effective 01.02.2019 to allow ITC on leasing/renting of motor vehicles with seating capacity exceeding 13 persons including driver. Since the bus service was used for business purposes and had approved seating capacity above the threshold, ITC restriction under Section 17(5) was not applicable. The applicant became eligible for ITC from 01.02.2019 onwards. Case-Laws GST Tue, 01 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=417988