Avalara > Blog > Goods and Services Tax > ITC can be claimed on transport services provided to employees

ITC can be claimed on transport services provided to employees

  • Oct 12, 2020 | Divita S Gupta

ITC can be claimed on transport services provided to employees

The Maharashtra bench of the Authority of Advance Ruling has held that input tax credit can be availed on GST charged by a service provider on hiring of a bus or any other motor vehicle having a seating capacity of more than thirteen people for the transportation of employees to & from the workplace. The applicant, Tata Motors, engaged a service provider to provide transportation facilities to its employees in buses for commuting to and from the workplace. They sought an advance ruling to clarify whether input tax credit is applicable on GST charged by the service provider on hiring of a bus having seating capacity of more than thirteen persons for transportation of employees to and from the workplace. They also sought to clarify whether the ITC, if available, will be restricted to the extent of cost borne by the Applicant. The bench held that ITC can be claimed in such a situation provided the services were provided after February 1st 2019 and will be restricted to the extent of cost borne by the Applicant.


Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

Get direct help with your questions about GST software

000-800-9191-184

Contact us

 
Latest GST News