Goods and Service TaxArticle·20 April 2026
ITC On Transport
By J the App
Executive Summary
The AAR held that ITC is admissible on employee transportation services where provision of such facility is mandated under law (Tamil Nadu Shops & Establishments Act).
The statutory obligation overrides the general ITC restriction under Section 17(5)(b).
However, eligibility is prospective from the effective date of the amended provision and subject to Section 16 conditions.
Issues for Determination
• Whether ITC is available on motor vehicle hiring for employee transport
...Read the full article in the app
This is a premium article. Download J the App to read the complete content.