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2022 (8) TMI 1236 - AAR - GSTAdmissibility of Input Tax Credit - GST charged by service provider on hiring of bus/motor vehicle having approved seating capacity of more than 13 persons for transportation of employees to and from the workplace - credit restricted to the extent of cost borne by the applicant, or not - HELD THAT:- On a plain reading of the provisions of section 17(5), it is evident that only the tax paid on motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver) is not available as input tax credit except under the situations prescribed therein and there is no restriction in availing input tax credit of the tax paid on motor vehicles or hiring or renting of motor vehicles having approved seating capacity of more than thirteen persons. In the instant case, the applicant has engaged the service provider to provide transportation facilities to the employees in non-air-conditioned buses for commuting to and from the workplace and it is stated that the service provider is using motor vehicles having an approved seating capacity of more than thirteen persons (including the driver) for the same - the applicant is eligible for availing input tax credit of the tax paid for hiring of bus/motor vehicle having approved seating capacity of more than 13 persons for transportation of their employees to and from the workplace. Extent to which the input tax credit can be availed by them as they are recovering a part of the cost incurred for transportation from the employees - HELD THAT:- The applicant cannot avail of the input tax credit of tax paid corresponding / attributable to the cost of transportation recovered from the employees - the eligibility of the applicant to avail input tax credit will be restricted to the extent of the cost of transportation borne by the applicant.
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