ITC of GST paid on hiring of bus for transportation of employees is allowed: AAR
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Case Details: Maanicare System India (P.) Ltd., In re - [2022] 137 taxmann.com 136 (AAR - MAHARASHTRA)
Facts of the Case
The applicant is a private limited company, engaged in the business of providing manpower services. It has hired a 49 seater bus for transportation of its employees. It is paying the GST under the reverse charge mechanism on such hiring services. The application of advance ruling was filed to understand if he can avail the input tax credit (‘ITC’) of GST paid on such services under reverse charge.
AAR Held
The AAR in this case observed that services were being received by the applicant in the course or furtherance of business. Moreover, Section 17(5) excludes the input tax credit on leasing, renting or hiring of motor vehicles for transportation of persons, having an approved seating capacity of more than thirteen persons (including the driver). The AAR held that the applicant is eligible to avail the ITC. However, ITC prior to February 01, 2019, is not eligible in view of the specific restriction as it was there earlier under Section 17(5) of the CGST Act.
List of Cases Referred to
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- Ykk India (P.) Ltd., In re [2020] 117 taxmann.com 290/80 GST 606 (AAA – Har.) (para 2.13)
- Tata Motors Ltd., In re [2020] 119 taxmann.com 106/82 GST 685 (AAA – Mah.) (para 2.13).
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Sir,
we are registered dealer of Works Contractor
we purchase on 50 seater staff bus, for our own employees transporting to site
can we eligible the GST-ITC on Bus purchase invoice