https://www.taxtmi.com/forum/issue?id=119601 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. en-us Fri, 14 Feb 2025 14:42:08 +0530 Sun, 23 Mar 2025 16:58:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119601 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. Discussion-Forum GST Fri, 14 Feb 2025 14:42:08 +0530 https://www.taxtmi.com/forum/issue?id=119601