2024-VIL-121-AAR
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SGST Advance Ruling Authority

GST – Tamil Nadu AAR - Section 16 and Section 17(5)(b) of the CGST Act, 2017 - Eligibility of input tax credit on leasing/renting/hiring of motor vehicles to provide transportation facility to staff/women employees - whether tax paid on input services in respect of leasing/renting/hiring of motor vehicles to provide transportation facility to women employees as per Tamil Nadu Shops and Establishments Act, 1947 is eligible as input tax credit – HELD - In terms of Section 17(5) of the CGST Act, 2017 input tax credit on services of leasing, renting or hiring of motor vehicles shall not be available as the same falls under the category of blocked credit, unless where it is obligatory for an employer to provide the same to its employees under any law for the time being in force - as per the provisions of the Tamil Nadu Shops and Establishment Act 1947, it is obligatory on the part of the applicant to provide transport facilities to women employees working beyond 8.00 PM – accordingly, the applicant is eligible to avail input Services in respect of leasing/renting/hiring of motor vehicles to provide transportation facility to ensure safety and security of women employees as per Tamil Nadu Shops and Establishments Act, 1947 subject to satisfying and fulfilling the eligibility and conditions provided under Section 16 of the CGST Act, 2017 - Whether the entire ITC be availed by the applicant for providing the transport facility – HELD - in the instant case the Input tax credit shall be available to the applicant, only on the tax paid on services of leasing, renting or hiring of motor vehicles for providing transport facilities to women employees alone who are arriving or leaving workplace between 8.00 P.M to 6.00 A.M. as the same has been made obligatory vide the Notification of Government of Tamil Nadu - Whether can ITC be availed for services received from the date of introduction of proviso to Section 17(5)(b)(iii) of CGST Act, 2017 for the periods up to March 2022 – HELD – the clause (b) of sub-section (5) of Section 17 has been substituted, as per CGST (Amendment) Act, 2018 (No. 31 of 2018) dated 29.08.2018, and brought into effect from 01.02.2019, vide notification no 02/2019 dated 29.01.2019 - the Government of Tamil Nadu had mandated the obligation on the employers to provide transportation facilities to women employees working in shifts vide Notification dated 28.05.2019. Hence, the input tax credit on leasing, renting or hiring of motor vehicles shall be available to the applicant from 28.05.2019 onwards, however the same shall be subject to satisfying and fulfilling the eligibility and conditions provided under Section 16 of the CGST Act, 2017.
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