GST DAILY – 400 : 18% GST shall be levied on services of renting of vehicles without operator: AAR
18% GST shall be levied on services of renting of vehicles without operator: AAR
Tag: rent-a-cab service
Assessee can avail ITC only on tax paid on services for leasing/ renting/ hiring of motor vehicles for women’s safety
The AAR, Tamil Nadu in the case of M/s. CMA CGM Global Business Services (India) (P.) Ltd., ruled that an Assessee is eligible to avail input services in respect of leasing/ renting/ hiring of motor vehicles to provide transportation facility to ensure safety and security of women employees as per Tamil Nadu Shops and Establishments Act, 1947 subject to satisfying and fulfilling the eligibility and conditions provided under Section 16 of Central Goods and Services Tax Act, 2017 (“the CGST Act”). Further, ITC shall be available to the Assessee only on the tax paid on services or renting, leasing or hiring of motor vehicles for providing transport facilities to women employees alone who are arriving or leaving workplace between 8 pm to 6 pm. Lastly, ITC on the same shall be available to the Assessee from May 28, 2019 onwards only on satisfying and fulfilling the eligibility provided under Section 16 of the CGST Act.
Uber, other apps seek govt clarity over GST liability for their business
A number of app-based ride-hailing services, including Uber, have approached the Union Finance Ministry, the GS) Council, and the AAR to determine their tax liability. This action, according to a report by The Economic Times (ET), follows a decision by the Karnataka AAR, which ruled that Bengaluru-based direct-to-driver app Namma Yatri is not required to pay GST.
Service Tax is not leviable on School buses as they are not categorised under the definition of ‘Cab’
The CESTAT, Ahmedabad in Akshar Travels v. C.C.E. & S.T.-Daman ruled that, use of motor vehicle for transportation of school children is clearly different from rent-a-cab service, hence no service tax is to be leviable on transportation of children to and from school.