Question54: Can input tax credit be available in respect of the payments towards Hire a taxi for official use by our employees under GST Act.


Answer As per section 17 (5) of CGST Act the credit is not available The same is reproduced below

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:'

(a) motor vehicles and other conveyances except when they are used''

(i) for making the following taxable supplies, namely:'
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances; .(REPLY dt. 3/2/2018)