In re Abhay Singh Gill (GST AAR Chhattisgarh)
The AAR, Chhattisgarh in the matter of M/s. Abhay Singh Gill [Advance Ruling No. STC/AAR/07/2021 dated November 25, 2021] has ruled that a bus operator is entitled to avail Input Tax Credit (“ITC”) on the rent bill issued by the service provider, who provides buses on rent charging Goods and Services Tax (“GST”) at the rate of 18%, subject to fulfilment of conditions stipulated under Section 16 read with Section 17 of the
(“the CGST Act”).
Facts:
M/s Abhay Singh Gill (“the Applicant”) is engaged in the service of transportation of passengers by air conditioner buses which falls under the SAC code 9964 and was charging consideration from passengers inclusive of fuel cost, thereby paying GST at the rate of 5%. The buses were taken on rent by the Applicant from another service provider for which they were issued bill of rent along with GST at the rate of 18%.
It was contended by the Applicant that SI. No. 8(vi) of the Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 (“the Services Rate Notification”) provides credit of input tax charged on services by another service provider for transporting passengers in a motor vehicle or renting of a vehicle, accordingly, the Applicant is entitled to avail ITC of GST paid at the rate of 18% on the rent bill issued by the other service provider with regard to renting of buses.
Issue:
Whether the Applicant is entitled to avail ITC of GST paid at the rate of 18% to the service provider on renting of buses?
Held:
The AAR, Chhattisgarh in Advance Ruling No. STC/AAR/07/2021 held as under:
