TaxTMI 
TaxTMI 
ITC ON BUS FOR TRANSPORTATION OF EMPLOYEE
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....TC ON BUS FOR TRANSPORTATION OF EMPLOYEE<br> Query (Issue) Started By: - HASMUKH PATEL Dated:- 15-9-2022 Last Reply Date:- 7-11-2022 Goods and Services Tax - GST<br>Got 10 Replies<br>GST<br>We are pharma manufacturer at vadodara-Gujarat. We have purchase five buses ( 56 seater) for transportation of our employee from city to our factory location. We pickup and drop our employees from Vadodara-city....
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.... to factory and factory to Vadodara-city. Can we take ITC og GST paid on purchase of BUSES ? If any case low available pls. share me. Reply By KASTURI SETHI: The Reply: Sh.Hasmukh Patel Ji, This decision can help you. Pl. also read corrigendum mentioned at the end. 2020 (9) TMI 352 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA - IN RE : TATA MOTORS LTD. Text corrected as per Corrigenda, dat....
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....ed 15-12-2020 as issued by Authority for Advance Ruling under GST, Maharashtra and As per Corrigenda Published in 2021 (45) G.S.T.L. 432 (25-2- 2021 - Vol. 45 : Part 4)] - 2020 (12) TMI 795 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA _______ Reply By HASMUKH PATEL: The Reply: Dear Sir, We are not hire buses , but buy the buses for our own used for transportation of our employee from home tow....
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....n to factory and factory to home town. What is about ITC charged on vehicle purchase. We can take ITC or not on invoice of purchase of buses. Reply By Amit Agrawal: The Reply: W.e.f 01.02.2019, relevant portion of Section 17 (5) (a) reads as follows: "Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be availab....
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....le in respect of the following, namely:- 2[(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- .........................................." As buses purchased by you are 56 seater, ITC there-against is NOT blocked under above ....
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....provision. In other words, you are entitled to avail subject ITC. Case-law pointed by Shri Kasturi Sethis Ji points to same direction even if same are related to 'renting / hiring services of motor vehicle having approved seating capacity of more than thirteen persons (including the driver)'. These are ex facie views of mine and the same should not be construed as professional advice / s....
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....uggestion. Reply By HASMUKH PATEL: The Reply: Thanks a lot. Any case or court decision on the same point ? Reply By PAWAN KUMAR: The Reply: Dear sir, I am fully agree with the views of Amit Agrawal sir. ITC of GST Paid on buses purchased for transportation of employees is eligible and allow. Reply By Shilpi Jain: The Reply: The provision of section 17(5) itself supports the view that credi....
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....t is eligible. That should suffice to take credit. Reply By KASTURI SETHI: The Reply: Yes. If GST Law is very much clear, we need not resort to case law. Reply By Ganeshan Kalyani: The Reply: Input tax credit is eligible on bus. Reply By HASMUKH PATEL: The Reply: See below FQA by CBEC Q295. Can a company take credit of a motor vehicle with a seating capacity of more than 13 used for transp....
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....ortation of employees? Ans. From 01-02-2019 section 17(5)(a) of the CGST Act, provides that ITC shall be disallowed on motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver). Hence ITC on motor vehicle with seating capacity of more than 13 is allowed if it is used in the course or furtherance of business including use....
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.... for transportation of employees. However, prior to 01-02-2019, ITC was not allowable. Reply By Aniket Patil: The Reply: Hello Sir/Madam, I am a contractor offering bus services to corporates for transportation of their employees. Can you please tell me if I can avail ITC on purchase of vehicles and spare parts, etc. Also, can anyone please clarify the GST slab and HSN code in my case? Thank....
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.... You, Aniket.<br> Discussion Forum - Knowledge Sharing ....