Page 133 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : PRASAR BHARTI BROADCASTING CORPORATION OF INDIA 371
vice provided by him to his employees is obligatory under any law for the time
being in force. The applicant vide his letter dated 19-11-2019 requested the au-
thorities to extend the time given for procuring relevant documents in the case
and sought permission to file the same by 20-12-2019. The case was listed for
hearing on 9-1-2020, 23-1-2020 and for final hearing on 17-2-2020. The representa-
tive despite having sought a number of adjournments in the matter and oppor-
tunities afforded, failed to cite the law under second proviso to Section 17(5)(b)
of the SGST/CGST Act.
Discussions and findings of the authority
4. We have carefully gone through the application for advance ruling
and submissions made by the applicant. The applicant is a registered taxpayer
and has entered into agreement for hiring commercially licensed vehicles for
transportation of his employees. The question raised by the applicant is whether
he is eligible to avail input tax credit of GST paid by the contractor on the ser-
vices rendered to the applicant. He also wants the authority to clarify on the GST
rate applicable on the same.
5. As per Section 16 of the CGST/HPGST Act, 2017, every registered
person shall, be entitled to take credit of input tax cheaged on any supply of
goods or services or both to him which are used or intended to be used in the
course or furtherance of his business. However, on this availment of input tax
credit (ITC), there are exceptions prescribed under Section 17(5) of the
CGST/HPGST Act, 2017. which provides as under :-
17(5) Notwithstanding anything contained in sub-section (1) of Section 16
and sub-section (1) of Section 18, input tax credit shall not be available in
respect of the following, 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 following taxable
supplies, namely :-
(i) further supply of such motor vehicles; or transportation
of passengers; or
(ii) 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; and
(II) for transportation of goods;
(ab) services of general insurance, servicing, repair and mainte-
nance in so far as they relate to motor vehicles, vessels or aiicrafl re-
ferred to in clause (ii) or clause (aa) :
Provided that the input tax credit in respect of such services shall be
available -
(i) where the motor vehicles, vessels or aircraft referred to in
clause (a) or clause (aa) are used for the purposes speci-
fied therein; and

GST LAW TIMES  16th July 2020  133