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2019 (4) TMI 1824 - AAAR - GSTInput tax credit - Apportionment of credit and blocked credits - hiring of buses for transportation of employees - hiring of cars for transportation of employees - restriction on “Rent a Cab” service specified in Section 17 (5) (b)(iii) as applicable to input tax credit - time limitation - challenge to AAR decision. What is rent-a-cab? - HELD THAT:- The contentions of the applicant that hiring of buses which can carry large number of passengers would not qualify under “rent-a-cab” is found to be untenable and the activity of the contractor in the instant case, providing buses or cars on hire to the applicant, is specifically covered under the meaning of “rent-a-cab” which makes the impugned supply as ineligible for ITC in terms of Section 17 (5) of the CGST/HGST Act, 2017 - further, the appellant had not challenged that the cars and buses hired by them do not fall under the definition of cab. Whether renting of vehicle is different from hiring? - HELD THAT:- It is seen that the taxing statute, do not make any distinction between renting or hiring. Further, irrespective of possession and control of the vehicle, the service so rendered falls within the taxable service. Thus the contention of appellant that hiring of vehicle is different from renting is untenable. Whether input tax credit on GST charged by the contractors for hiring of buses and cars for transportation of employees is admissible when there is a restriction on admissibility of input tax credit on Rent-a-Cab service as provided in section 17(5)(b)(iii) of CGST Act, 2017 and HSGST Act, 2017? - HELD THAT:- Section 17 of the Central Goods and Services Tax Act, 2017 and HSGST, Act, 2017 provides certain restrictions and according to which input tax credit on certain goods or services or both are not admissible - the appellant are fulfilling the conditions as prescribed under Section 16 of CGST Act, 2017 and HSGST Act, 2017. We further find that after amendment, benefit of Input Tax Credit has been extended to the motor vehicles having approved seating capacity of more than thirteen persons when they are used for making taxable supplies of transportation of passengers. Therefore, the appellant is eligible to input tax credit of the GST charged by the Contractor for hiring of buses only having approved seating capacity of more than thirteen persons for transportation of employees after amendment of th Act, ibid with effect from 30.08.2018. The Advance Ruling given by AAR is modified.
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