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input tax credit on Rent a cab service

19 January 2019

is input tax credit available on Rent a cab service if vendor is charging gst on the bill and such service is for official purpose and that vendor is charging monthly bill to company?

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9 Replies

jaheer hussain (577 Points)
Replied 19 January 2019

sir that service use for business is definitely you can Claim itc

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 20 January 2019

No rent a cab services are block under 17(5) , hence cannot claim ITC

Trex Gaming_67 (243 Points)
Replied 21 January 2019

No ITC can not be claimed on Rent-a-cab, life insurance and health insurance, EXCEPT WHERE
 The Government has made it obligatory for an employer to
provide any of these services to its employees; or
 Inward supply of these services is used for making an outward

hary (CA) (116 Points)
Replied 21 January 2019

ITC is not available for rent-a-cab, health insurance and life insurance.

However, the following are exceptions, i.e., ITC is available for-

a. Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force

For example, assuming the government passes a rule for all employers to provide mandatory cab services to female staff in night shifts. ABC Ltd. hires a rent-a-cab to provide to transportation to its female staff on night shifts. Then ITC will be available to ABC Ltd. on the GST paid to the rent-a-cab service.

b. If the category is same for the inward supply and outward supply or it is a part of the mixed or composite supply

For example, ABC Travels lends out a car to XYZ Travels. Then XYZ Travels can claim ITC on the same.

Read our article on GST impact on cab services.

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Madanmohan (Advocate and Tax Consultant) (27 Points)
Replied 07 March 2019

Is there any restriction to take ITC on the basis of tax rate 5% & 12% in same line business? Kindly clarify the tax rate also... Thank you....

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Vishnu Teja (student) (36 Points)
Replied 20 May 2019

Sir A person bougt a car on his OWN i.e; the car is owned by him & registered in OLA as a cab operator, 1) Can he claim ITC ? If he is registered 2) If such person is not registered , *Can OLA claim ITC on behalf of such cab operator* ? 3) Is OLA ,allowed to claim ITC directly into its account instead of cab operator ?