Question67: XYZ Ltd. had taken Motor Cars on lease. These cars are used by the employees of XYZ (both for personal and business use). Is XYZ required to pay GST on it being falling under Schedule II of the definition of supply'

Answer If the motor car provided to the employee as per the facility given to employees by the company and it is in CTC then it will not be considered as supply to employee under schedule III.

It is further informed that Section 17(5)(b)(iii) of CGST Act, 2017 prohibits availing of ITC on rent a cab service. Thus XYZ is not eligible for ITC on motor car taken on lease.(REPLY dt. 28-02-2018)