One of my client is providing transportation of passenger services by way of hiring of motor vehicles (Car & buses) so can he take Input tax credit of GST paid on such hiring services?

Reply—Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient attracts 5% GST without ITC or 12% with ITC.If your client is charging 12% GST, ITC on hiring charges can be claimed.