Bus operators can avail ITC on rent paid towards hiring of buses

The AAR, Chhattisgarh in the matter of M/s. Abhay Singh Gill [Advance Ruling No. STC/AAR/07/2021 dated November 25, 2021] has ruled that a bus operator is entitled to avail Input Tax Credit (“ITC”) on the rent bill issued by the service provider, who provides buses on rent charging Goods and Services Tax (“GST”) at the rate of 18%, subject to fulfilment of conditions stipulated under Section 16 read with Section 17 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

Source a2ztaxcorp