Since the applicant has specifically submitted that they are using motor vehicles having approved seating capacity of more than thirteen persons, the applicant shall be eligible for Input lax Credit after 01.02.2019.
Input tax credit— Section 17(5) of CGST Act— In the instant case, the applicant has sought advance ruling on following question-
a) Whether ITC is available to the Applicant on GST charged by service provider on hiring of bus, having seating capacity of more than thirteen person for transportation of employees to & from workplace.
b) Whether GST is applicable on amount recovered by the Applicant from employees for usage of bus transportation facility.
c) If ITC is available as per (a), whether it will be restricted to the extent of cost borne by the Applicant (employer).
Prior to CGST Amendment Act, the ineligibility of ITC was for services under the head 'rent a cab'. 'Rent a cab' being a wide term included all types of motor vehicles which were hired for transportation of employees.
With the introduction of new provisions w.e.f. 01/02/19, ITC on renting, leasing and hiring of motor vehicles have been disallowed only for vehicles having capacity upto 13 seats.
Held that— since the applicant has specifically submitted that they are using motor vehicles having approved seating capacity of more than thirteen persons (including the driver), the applicant shall be eligible for Input lax Credit in this case.
As per clause 1 of the said Schedule III, services by an employee to the employer in the course of or in relation to his employment shall be treated neither as a supply of goods nor a supply of services. Since the applicant is not supplying any services to its employees, in view of Schedule-III mentioned above, we are of the opinion that GST is not applicable on the nominal amounts recovered by Applicants from their employees in the subject case.
although the assessee is entitled for input service credit for the manufacturing of final product but the amount reimbursed by the employees by way of contribution is not entitled for input service credit.
Since the applicant has specifically submitted that they are using motor vehicles having approved seating capacity of more than thirteen persons, the applicant shall be eligible for Input lax Credit after 01.02.2019.
Input tax credit— Section 17(5) of CGST Act— In the instant case, the applicant has sought advance ruling on following question-
a) Whether ITC is available to the Applicant on GST charged by service provider on hiring of bus, having seating capacity of more than thirteen person for transportation of employees to & from workplace.
b) Whether GST is applicable on amount recovered by the Applicant from employees for usage of bus transportation facility.
c) If ITC is available as per (a), whether it will be restricted to the extent of cost borne by the Applicant (employer).
Prior to CGST Amendment Act, the ineligibility of ITC was for services under the head 'rent a cab'. 'Rent a cab' being a wide term included all types of motor vehicles which were hired for transportation of employees.
With the introduction of new provisions w.e.f. 01/02/19, ITC on renting, leasing and hiring of motor vehicles have been disallowed only for vehicles having capacity upto 13 seats.
Held that— since the applicant has specifically submitted that they are using motor vehicles having approved seating capacity of more than thirteen persons (including the driver), the applicant shall be eligible for Input lax Credit in this case.
As per clause 1 of the said Schedule III, services by an employee to the employer in the course of or in relation to his employment shall be treated neither as a supply of goods nor a supply of services. Since the applicant is not supplying any services to its employees, in view of Schedule-III mentioned above, we are of the opinion that GST is not applicable on the nominal amounts recovered by Applicants from their employees in the subject case.
although the assessee is entitled for input service credit for the manufacturing of final product but the amount reimbursed by the employees by way of contribution is not entitled for input service credit.