In re YKK India Pvt Ltd (AAAR Haryana)
1. Whether the applicant (YKK) is eligible to take input tax credit on GST charged by the Contractor for hiring of buses for transportation of employees?
Yes, applicant is eligible to take input tax credit on GST charged by the Contractor for hiring of buses having approved seating capacity of more than thirteen persons for transportation of employees after amendment in CGST Act, with effect from 30.08.2018. Prior to 30.08.2018 Input Tax Credit on buses was not admissible.
2. Whether the applicant (YKK) is eligible to take input tax credit on GST charged by the Contractor for hiring of cars for transportation of employees?
No, applicant is not eligible to take input tax credit on GST charged by the Contractor for hiring of cars for transportation of employees.
3. Whether the restriction on “Rent a Cab” service specified in Section 17(5)(b)(iii) is applicable to input tax credit on GST charged by the Contractor for hiring of buses for transportation of employees?
Yes, the restrictions on “Rent-a-Cab” service specified in Section 17(5)(b)(iii) at the relevant time is applicable to input tax credit on GST charged by the Contractor for hiring of buses for transportation of employees. However, after amendment in CGST Act, with effect from 30.08.2018, there is no restriction on hiring and renting of motor vehicles having approved seating capacity of more than thirteen persons.
4. Whether the restriction on “Rent a Cab” service specified in Section 17(5)(b)(iii) is applicable to input tax credit on GST charged by the Contractor for hiring of cars for transportation of employees?
Yes, the restrictions on “Rent-a-Cab” service specified in Section 17(5)(b)(iii) is applicable to input tax credit on GST charged by the Contractor for hiring of cars for transportation of employees.
Further even after amendment of CGST Act, with effect from 30.08.2018, input tax credit is not available on GST charged by the contractor for hiring/renting of motor vehicles having approved seating capacity of not more than thirteen persons (including Driver) for transportation of passengers.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
