Page 177 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : YKK INDIA PVT. LTD. 687
and Services Tax Act, 2017 have been made vide the Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) published in the Gazette of India on
30-8-2018. The amended Section 17(5) of Central Goods and Services Act is re-
produced below :
“(b) in sub-section (5), for clauses (a) and (b), the following clauses shall
be substituted, namely :-
“(a) motor vehicles for transportation of persons having approved
seating capacity of not more than thirteen persons (including
the driver), except when they are used for making the follow-
ing taxable supplies, namely :-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used -
(i) for making the following taxable supplies, namely :-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) ……………………………………………
(b) the following supply of goods or services or both -
(i) food and beverages, outdoor catering, beauty treatment,
health services, cosmetic and plastic surgery, leasing,
renting or hiring of motor vehicles, vessels or aircraft referred
to in clause (a) or clause (aa) except when used for the purposes
specified therein, life insurance and health insurance :
Provided that the input tax credit in respect of such
goods or services or both shall be available where an in-
ward supply of such goods or services or both is used by
a registered person for making an outward taxable sup-
ply of the same category of goods or services or both or
as an element of a taxable composite or mixed supply;
(ii) …………………………………
(iii) ………………………………….”
16.6 In view of the above statutory provisions, we find that the appel-
lant are fulfilling the conditions as prescribed under Section 16 of CGST Act, 2017
and HSGST Act, 2017. We further find that after amendment, benefit of Input Tax
Credit has been extended to the motor vehicles having approved seating capacity
of more than thirteen persons when they are used for making taxable supplies of
transportation of passengers. Therefore, the appellant is eligible to input tax
credit of the GST charged by the Contractor for hiring of buses only having ap-
proved seating capacity of more than thirteen persons for transportation of em-
ployees after amendment of the Act, ibid with effect from 30-8-2018.
17. In sum, and having regard to the questions framed in the appel-
lant’s application for Advance Ruling and for the reasons cited supra, we render
the ruling question wise as follows :

GST LAW TIMES  26th March 2020  273