ISSUE:
Whether the GST paid on the Motor cars of seating capacity not exceeding 13 (including Driver) leased or rented to customers will be available to it as input tax credit in terms of Section 17(5) of Central Goods and Service Tax Act, 2017?
Whether the GST paid on the Motor cars of seating capacity not exceeding 13 (including Driver) registered as public vehicles with RTO to transport passengers provided to their different customers on lease or rental or hire will be available to it as input tax credit in terms of section 17(5) of Central Goods and Service Tax Act, 2017?
Whether the supply of services by way of renting or, leasing, or hiring motor vehicles to Special Economic Zones (SEZ) to transport the employees of the customers without payment of IGST is deemed as a taxable supply and whether ITC is admissible on motor vehicles procured and used commonly for such supply to SEZ and other than SEZ supply?
RULE:
Only when the taxable person makes a further supply of such motor vehicles with a seating capacity of less than thirteen can he claim the input tax credit.
If the person or entity is a service provider who provides service for renting/leasing motor vehicles, the taxable outward supply should include the further supply of such purchased motor vehicles to be eligible for the input tax credit.