No ITC on buses/cars hired for transportation of employees from various locations to factories: AAR

GST : Services of contractor for hiring of buses/cars for transportation of employees qualifies as 'rent-a-cab' as any commercial vehicle hired for passenger transportation is covered by such phrase. Hence, in view of restriction contained under section 17(5)(b)(iii) of CGST Act, 2017 applicant factory owner is not eligible to take ITC on GST charged by Contractor for hiring of buses/cars for transportation of its employees

Haryana AAR holds that applicant is not eligible to take ITC on GST charged by the Contractor for hiring of buses/cars for transportation of employees in view of restriction contained u/s 17(5)(b)(iii) of CGST Act, 2017; Rejects applicant’s contention that buses which can carry large number of passengers would not qualify under “rent-a-cab” observing that any commercial vehicle hired for passenger transportation is covered by such phrase;...