9911796707
TMI Blog2019 (6) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... late Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018 1. Admissibility of the application 1.1 The Applicant, stated to be supplying cabs on a rental basis, seeks a ruling on whether credit is admissible of the input tax paid on the purchase of motor vehicles for the supply of the above service. 1.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of motor vehicles to be used for supply of rent-a-cab service should, therefore, be examined in terms of section 17(5)(a)(B) of the GST Act. As renting of a cab is made for the sole purpose of transporting passengers, the Applicant is eligible to claim the input tax credit on the purchase of motor vehicles for supplying rent-a-cab service. 4. Observations and findings of the Bench 4.1 The GST Act has been amended with effect from 01/02/2019. Before amendment the provisions of section 17(5)(b)(iii) of the Act did not allow credit of GST paid on inputs for supply of rent-a-cab service, except under certain specific conditions that are not applicable in the applicant's case. It rules out credit of input tax paid on the purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As obvious from reference to the accompanied belongings, the recipient of the service is a passenger travelling from one place to another. He may have varying degrees of control over the carriage, providing him with a certain measure of independence in choosing the destination and travel time, depending upon the nature of the contract, explicit or implied. But the supply remains that of transportation of the recipient as a passenger, and the consideration is paid for the distance travelled. 4.5 Renting of any motor vehicle, however, is classified under SAC 9966. It is taxable under Sl No. 10(i) of the Rate Notification. The recipient of this service is not a passenger. He is enjoying the service of having provided a motor vehicle, with o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicle. In renting or hiring of a motor vehicle (SAC 9966) the recipient is provided the right to use the vehicle over a specified duration, whether he is a passenger or not. Distance travelled is taken into consideration to recover the cost of fuel. But travelling a certain distance is not the essence of the service. 4.8 Rent-a-cab is not defined in the GST Act. Nature of the Applicant's service is, therefore, derived from what is stated in the Application and what can be ascertained from the invoices. The Applicant provides cab rental service inter alia to institutions like West Bengal Postal Service. The recipient, as discussed in para 4.6, has to pay the Applicant a certain amount per month as consideration irrespective of what dista ..... X X X X Extracts X X X X X X X X Extracts X X X X
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