In re AGS Health Private Limited (GST AAR Tamilnadu)
The present case concerns an application for advance ruling filed by a company engaged in Information Technology Enabled Services (ITES), providing Business Process Outsourcing (BPO) services to overseas clients. Due to operations across multiple time zones, the applicant runs its business in various shifts, often extending beyond 8:00 PM.
Under the Tamil Nadu Shops and Establishments Act, 1947 and relevant notifications, employers are required to provide transportation facilities and ensure the safety, dignity, and security of women employees working in shifts, particularly during night hours. In compliance with this statutory requirement, the applicant procures services of leasing, renting, or hiring motor vehicles to transport employees, especially women employees working between 8:00 PM and 6:00 AM. No cost is recovered from employees for such transportation, and the applicant had not availed input tax credit (ITC) on these services prior to seeking the ruling.
The applicant sought clarity on three issues: whether GST paid on hiring of vehicles for employee transportation qualifies for ITC; whether full ITC can be availed for all shifts; and whether ITC can be claimed from the date of insertion of the proviso to Section 17(5)(b) of the CGST Act (effective 01.02.2019).
