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2020 (6) TMI 519 - AAR - GSTInput Tax Credit - GST paid by the contractor on the services rendered to the applicant - rate of GST - HELD THAT:- The availability of ITC as per the provision of second proviso to section 17(5)(b) is available only on the condition that such goods or service or both is obligatory for an employer to provide to its employees under any law for the time being in force. Since, the applicant has not been able to cite any law under which the service of providing the facility of transportation to his employees is obligatory under any law, therefore ITC will not be available to him. The applicable rate of tax on renting of Cabs as per Notification No. 20/2017 dated 22.08.2017 is 5% with limited ITC (of input services in the same line of business) and 12% with full ITC - If the facility provided by a taxpayer for transportation of employees is not obligator under any law, for the time being in force then no ITC will be available to such a taxpayer. The applicant will however be eligible to claim ITC for the service supplied at 12% GST Rate if the conditions laid down in the second proviso to section 17 (5)(b) are satisfied.
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