M/s Hans Logistics Private Ltd. is a registered person engaged in passenger transport services. It purchased a luxury bus for ₹ 22,30,000 plus GST @ 28% for its business as on 12.09.2023. Determine whether the company ca
CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · June 2024
M/s Hans Logistics Private Ltd. is a registered person engaged in passenger transport services. It purchased a luxury bus for ₹ 22,30,000 plus GST @ 28% for its business as on 12.09.2023. Determine whether the company can avail the benefit of input tax credit of the GST paid by it on motor vehicles.
Answer & Explanation:
As per section 17(5) (a), input tax credit shall not be available in respect of motor vehicles but as per exception given, input tax credit shall be available if inter-alia it is used for making taxable supplies of transportation of passengers, as in the given case Hans Logistics Private Ltd is engaged in transportation of passengers it will be entitled to take credit of GST amounting to ₹ 6,24,400 i.e. (₹ 22,30,000 * 28%).
Topics: Goods and Services Tax (GST)
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