Madam/Sir,
We are private limited company, we had taken a rent a cab service from registered cab service provider with tax charged 12% , Cgst 6% and Sgst 6%.
Kindly advise regarding input credit on this case.
2 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 29 November 2021
As per section 17(5)(b)(I) ITC on renting of vehicles is blocked credit , Input tax credit not available .
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4615 Points)
Replied 29 November 2021
If motor vehicle which is being rented is 12 or more seater then credit is eligible. If not credit is not eligible.
Also, to reduce tax costs may look at comparing quotes from other rent a cab providers who charge 5% GST instead of 12%.
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