Question20:  I want a clarification whether a supplier of 'rent a cab' service who is charging 5% GST from customers, is entitled to avail input tax credit of GST on input procured from registered. Vendors and GST paid under reverse charge on service procured from URD U/s9(4)'

Answer: Notification No. 11/2017- CT (R) dated 28.06.2017 provides for effective rate of GST applicable for different types of service. According to entry against Sr. No. 8 of the said Notification 5% tax would be applicable subject on passenger transport services by a taxi with whatever name called provided that  the credit of input tax charged on goods and or services used in supplying the service has not been taken.  Accordingly, as you are charging 5% GST, ITC is not entitled to you even when paid under reverse charge mechanism under Section 9(4) of CGST Act, 2017. (Reply dt. 04/12/2017)