Parasar Bharti Broadcasting Corporation of India- AAR Himachal Pradesh

Issue Involved : 

• Applicable GST rate on renting of motor cab service.

• Whether ITC will be available to the recipient on the renting of motor cab services for transportation of employee.

Ruling By AAR : 

• The applicable rate of tax on renting of cabs as per Notification No. 20/2017 dated 22.08.2017 is 5% with limited ITC (of input services in the same line of business) and 12% with full ITC.

• If the facility provided by a taxpayer for transportation of employees is not obligatory under any law, for the time being in force then no ITC will be available to such a taxpayer. The applicant will however be eligible to claim ITC for the service supplied at 12% GST Rate if the conditions laid down in the second proviso to section 17 (5)b are satisfied.