TaxTMI 
TaxTMI 
Credit of GST on Car Rent
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....redit of GST on Car Rent<br> Query (Issue) Started By: - Murari Agrawal Dated:- 23-8-2017 Last Reply Date:- 24-8-2017 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>We have taken a car on monthly hire charges for use of factory. Hire charges include Fuel Charges & driver's salary. The Service Provider is unregistered. Under which SAC No. reverse GST is payable and whether we can take ....
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....credit of such reverse payment. Thanks, Reply By KASTURI SETHI: The Reply: SAC 9966 5% without ITC 12 % with ITC Earlier it was 18%. Reduced in the meeting GST Council held on 5 & 6.8.17 Reply By Murari Agrawal: The Reply: Thanks Sir, pl clarify can we pay 12% on reverse charge basis and take ITC ? This question arises because no ITC is available on purchase of Car. Also, the condition of use ....
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....in furtherance of business is to be considered. Reply By KASTURI SETHI: The Reply: In course or furtherance if business is first condition . There is a difference between purchase of a car and hiring a car. Both have different codes. HSN for purchase and SAC for service. Reply By Himansu Sekhar: The Reply: You cannot take the credit Reply By Rajagopalan Ranganathan: The Reply: Sir, Accordi....
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....ng to Section 17 (5) (a) of CGST Act, 2017 "input tax credit shall not be available in respect of motor vehicles and other conveyances except when they are used-- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conv....
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....eyances; (ii) for transportation of goods; Therefore if you hire the motor vehicle for use in the factory ITC in respect of GST paid on such vehicle is not available. Reply By KASTURI SETHI: The Reply: Yes. As detailed by Sh.Ranganathan Sir and also opined by Sh.Himansu Sekhar, you are to ascertain whether you fulfill the conditions laid down under Section 17(5) of CGST Act.2017. Thanks to b....
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....oth experts for making the picture clear. Reply By KASTURI SETHI: The Reply: Dear Querist,. If you are covered under any of exclusion clause A, B, C , (ii) detailed above, then you can take ITC. ITC is conditional.<br> Discussion Forum - Knowledge Sharing ....