The Uttar Pradesh Authority of Advance Ruling (AAR) ruled that Input Tax Credit (ITC) available on GST charged by service provider on hiring of bus for transportation of employees to and from workplace.
The applicant, Dr. Willmar Schwabe (I) Private Limited is engaged in manufacture and supply of Homeopathic Medicines and related products in India. The Applicant has entered into an arrangement with ‘Bhati Motors’, pursuant to which the Applicant is availing bus hiring services, on contract basis, for transportation of its employees, to & from the workplace (Noida). The approved seating capacity in such buses can be more than thirteen persons and, in some cases, even less than thirteen persons. The buses hired by the Applicant, where the seating capacity is more than 13 passengers, are non-air conditioned. M/s Bhati Motors is having the contract carriage permit issued by the relevant regulatory authorities in respect of buses deployed for employee transportation service. Further, M/s Bhati Motors is charging GST on supplies made to the Applicant.
The applicant has sought the advance ruling on the issues whether ITC is available to the Applicant on GST charged by service provider on hiring of bus, having seating Capacity of more than thirteen person for transportation of employees to & from workplace; Whether GST is Applicable on amount recovered by the Applicant from employees for usage of bus transportation facility; and ITC is Available.
The coram of Vivek Arya and Abhishek Chauhan ruled that ITC is available to the Applicant on GST charged by service provider on hiring of bus, having seating Capacity of more than thirteen person for transportation of employees to & from workplace only after 01.02.2019. The GST is not Applicable on the amount recovered by the Applicant from employees for usage of bus transportation facility.
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