Bus ITC eligible or not

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This topic contains 4 replies, has 4 voices, and was last updated by  sivafinance 1 month, 2 weeks ago.

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  • #60732

    durgeshkukreja
    Participant
    Important things to be considered before Filling GSTR-9, 9A and GSTR-9C Returns

    Whether ITC will be available of Bus hire charges to a company for transportation of employees.

    #60775

    Pratibha Goyal
    Participant

    As per my understanding of CGST Act 2017 read with CGST Amendment Act 2018, ITC will not be available of Bus hire charges to a company for transportation of employees unless it is an obligation for employer to provide this facility to employees under any law.

    #60777

    Pratibha Goyal
    Participant

    Relevant Extract of Section 17(5) of CGST Act 2017 read with CGST Amendment Act 2018 [Blocked Credits] is presented below for reference:

    17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:—

    (b) the following supply of goods or services or both—

    (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:

    Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

    (ii) membership of a club, health and fitness centre; and

    (iii) travel benefits extended to employees on vacation such as leave or home travel concession:

    Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.

    #62769

    mudit
    Participant

    No

    #63288

    sivafinance
    Member

    As per company ACT allowed. So recent amended notification 09/2019 dated 31.01.2019 13 seater and above ITC eligible.

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