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TRANSPORT OF PASSENGERS

18 January 2018

I have cabs.. Can I claim input tax credit of gst on purchase of car insurance, Repair and services against output tax??

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5 Replies

P Vineeth Reddy (Audit Executive) (24 Points)
Replied 18 January 2018

Hi Amarender,

For cabs service, there are two parts in GST,

1. GST @ 5%, if you charge 5% for your services then you can't claim input tax credit on your purchases

2. GST @ 12%, if you charge 12% for your services then you can claim input tax credit on your purchases

Choose one of the above on the basis of your services turnover.

Regards,

Vineeth

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amarender putta (30 Points)
Replied 18 January 2018

I opted presently 5% category. Can I change my tax from 5 to 12% now. Is it possible??

P Vineeth Reddy (Audit Executive) (24 Points)
Replied 18 January 2018

Yes, you can charge 12% and can claim ITC from the same date you started charging 12%

amarender putta (30 Points)
Replied 18 January 2018

I am having input of paying INSURANCE on car at that time I charged 5%. Can I claim this input now when I changed to 12 % frm 5% in middle of the month??

amarender putta (30 Points)
Replied 19 January 2018

In the 25th gst council meeting, allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator services.. What is the meaning of same line of business??