No ITC for GST paid on purchase of motor vehicles for supplying rent-a-cab service

In Re Mohana Ghosh (GST AAR West Bengal) GST paid on purchase of motor vehicles for supplying rent-a-cab service is not admissible for credit in terms of section 17(5)(b)(i)  The applicant was supplying cabs on a rental basis. It submitted that people take the car on rent for the transportation of passengers. Rent-a-Cab was, therefore, essentially associated with the transportation of passengers. GST paid on the purchase of motor vehicles for supplying rent-a-cab service should, therefore, be admissible in terms of section 17(5)(a)(B). It sought an advance ruling on whether credit was admiss...