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TMI Blog2019 (4) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE: 3.1 The Applicant is registered with the Department having GSTIN 23AAHFN3084A1ZQ for providing "Goods Transport Agency Service" it is availing option to pay tax @12% and availing ITC facility on vehicle and their spares used for providing GTA service as well as on inward services namely insurance of vehicles and repair and maintenance of vehicles. The applicant has recently purchased cars and has provided them to various companies on lease rent under a Lease Agreement entered between them on monthly basis for their use in furtherance of their business. The applicant while purchasing the cars for their business purpose i.e. for providing to other companies on a monthly lease rent under a lease agreement has paid GST as applicable. 4. QUESTIONS RAISED BEFORE THE AUTHORITHY The following questions have been posted before the Authority:- 1. The applicant desire the advance ruling on the subject that whether the GST paid on these cars provided to their different customers on lease rent will be available to it as INPUT TAX CREDIT(ITC) in terms of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er conveyances except when they are used. (i) For making the following taxable supplies, namely - (A) Further supply of such vehicles or conveyances; or (B) Transportation of passengers; or (C) Imparting training on driving, flying, navigating such vehicles or conveyances; (ii) For transportation of goods; (b) the following supply of goods or services or both- (i) Foods and beverages.............................or mixed supply. (ii) Membership of club, health and fitness centre. (iii) Rent-a-cab,........................... '(c) work contract.............supply of work contract services. (d) Goods or services.........................of furtherance of business. (e) goods or services...................... (f) goods or services----- (g) goods or services or both used for personal consumption. One of the eligibility is "motor vehicle used for making a taxable supply namely". Further supply of such vehicle or conveyance; or................". Following the above in its true letter and spirit the applicant who has purchased cars after paying GST for the purpose of renting (under monthly lease agreement between applicant & their customers) out for further use i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 16. Eligibility and conditions for taking input tax credit. Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. Section 17 (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely :- 1. After GST Act amendment 2018 - (a) motor vehicle for transportation of person having approved seating capacity of not more then thirteen person(including the driver), except when they are used for making the following taxable supplies, namely: (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicle; (aa)....... 2. Before the above amendment (a) motor vehicles and other conveyances except when they are used - (i) for making the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upply of goods and / or services made for consideration in the course or furtherance of business. In order to constitute a supply "the essential elements required to be satisfied are in the nature of (i) supply of goods and / or services, (ii) supply for a consideration, (3) supply made in the course or furtherance of business (iv) supply made in taxable territory, (v) supply a taxable supply and (vi) supply made by a taxable person. Now on applying the principals laid down by the law, as highlighted above, to the facts of the instant case as also reflecting in the Lease Agreement entered between the Applicant and its customer, we find that - (i) Applicant is supplying goods i.e. cars and services i.e. lease rent services, (ii) the supplies are against a monthly monetary consideration (iii) the supplies are in the course of applicant's business (iv) the supplies are effected in taxable territory (v) supplies are taxable in nature and (vi) Applicant is registered under GST Act Thus we find that the activities carried out by the applicant are in the nature of "taxable Supply". 7.9 Now we come to the moot question to be answered in the issue at hand. Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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