9911796707
TMI Blog2019 (6) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The advance ruling in this matter was pronounced on 10/06/2019. The order, however, suffers from certain legal errors that are apparent on the face of the record. They need to be rectified. This Authority, therefore, proceeds to amend the said order on its own acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of motor vehicles for supplying rent-a-cab service should, therefore, be admissible in terms of section 17(5)(a)(B) of the GST Act. She submits photocopies of a few invoices, showing that the invoices are made on the distance travelled 3. Submission of the Revenue 3.1 The concerned officer from the Revenue submits that the GST Act did not allow credit of GST paid on inputs for supply of rent-a-cab service in terms of section 17(5)(b)(iii) of the Act. However, the provisions of the Act have since been amended. The above restriction is removed with effect from 01/02/2019. Post-amendment, admissibility of input tax paid on the purchase of motor vehicles to be used for supply of rent-a-cab service should, therefore, be examined in terms of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly of motor vehicles of a specific category (the motor vehicles meant for transportation of persons having seating capacity not exceeding thirteen persons). The restriction, therefore, does not apply to the goods transport vehicles, buses etc. Inward supplies of cabs like the ones the Applicant uses for the supply of rent-a-cab service, however, fall under the ambit of the restriction, unless they are used for the supplies mentioned under section 17(5)(a)(A) to (C) of the Act.] The Applicant argues that rent-a-cab service qualifies to be treated as a supply of passenger transportation service. [Input tax credit on inward supply of motor vehicles used for outward supply of rent-a-cab service should, therefore, according to the Applicant, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the distance travelled, but for renting the cab. 4.5 The photocopies of the Applicant's invoices show that the recipients are institutions like West Bengal Postal Circle, who clearly could not travel as a passenger. Furthermore, they are raised for the duration of renting, which is a fixed number of hours in a calendar month. If the cab is requisitioned on holidays or for extra hours on a working day, an additional amount is charged irrespective of the distance travelled. The recipient has to pay a fixed amount whether or not the cab is moved. If, however, the cab travels beyond a threshold, the rent is calculated as a cost-plus, taking the distance travelled into account. As apparent from Sl No. 10(i) of the Rate Notification, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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