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2019 (4) TMI 304 - AAR - GSTInput tax credit - GST paid on cars provided to their different customers on lease rent - Section 17(5) of Central Goods and Service Tax Act, 2017 - Held that:- In respect of motor vehicles, except in certain circumstances, the Input Tax Credit is not available. These exceptional situations are enumerated in the Sub Section 5(a) after the amendment and sub section 5(a)(i) and (ii) before the amendment - In the present case, the Applicant is providing cars on Lease Rent to their customers for carrying passengers and hence not covered by the exception as provided in clause (B) and (C) of sub section 5(a) after the amendment and in clause (B) and (C) of sub section5(a)(i) before the amendment as well as in Sub section 5 (a) (ii) of Section 17 before the amendment. The sub section 5 (a) (i) reads as “for making following taxable supplies namely” and sub section 5(a)(A) after the amendment /5(a)(i) (A) before the amendment, reads as “further supply of such vehicles or conveyances”. The term 'Supply' is wide in its import and includes all forms of supply of goods and / or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to the made for a consideration by a person in the course or furtherance of business. Similarly a “taxable supply” means a supply of goods and / or services which is chargeable to goods and service Tax under the GST Act. The activities carried by the Applicant regarding supply of tax paid motor vehicles on monthly lease rent plus Goods & Service Tax as applicable to their customer under a proper agreement properly satisfies the conditions laid down under Section 17(5) (a) (i) (A) before the amendment and under subsection 5(a)(A) after the amendment to make it eligible for availment of input tax credit on motor vehicle for the Tax paid by it while acquiring the said vehicles. ITC allowed.
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