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Question ID : 40698


ITC - ELIGIBLE FOR GST ON PURCHASE OF AMBULANCE ?? Our Pharma client is purchasing an Ambulance for plant staff, we are informed no itc credit can be availed as it traps under 17(5)(a) for motor vehicle used for transportation of persons having seating capacity not more than 13 persons,please note this is a specialty vehicle having no seating but carries portable bed , this is maruti ecco converted at maruti plant and cleared from their factory gate as ambulance and not as car, even rto registration fees are different for a regular car and an ambulance , Prime definition in motor vehicle act 1988 , Motor-car, defined-: as other than a “transport vehicle” and “transport vehicle” means a public service vehicle, a goods carriage, an educational institution bus or a private service vehicle; Thus Ambulance being a private service vehicle, it is not motor car but a specialty Vehicle, kindly share your views and other suggestions to drive point on this GST ITC eligibility Thanks CA VIPUL D. JHAVERI MUMBAI

Posted by VIPUL JHAVERI on Jun 27, 2020

Filed Under GST

Answer ID : 80584

Ambulance will be covered in the ambit of motor vehicle as defined u/s 2(28) of MV Act unless used only within the factory premise and not to be sent outside. Further, service by way of transportation of patients in an ambulance is exempt under GST. Alternatively, one can explore applicability of proviso to Section 17(5)(b) where leasing, hiring or renting of motor vehicle (Ambulance) is obligatory for an employer for his employee. As per Rule 68V of Gujarat Factory Rules, it appears that Ambulance is mandatory for factories carrying hazardous process. Hence, hiring of motor vehicle in such scenario will be eligible. A similar applicability in medicinal procedures or other provision can be evaluated for the querist and ITC feasibility can be evaluated. Hope this is helpful.

Posted by SACHIN AGARWAL on Jun 29, 2020
Answer ID : 80587

Thanks Sachin ji

Posted by VIPUL JHAVERI on Jun 30, 2020
Answer ID : 80588

Thanks Sachin ji & Colleagues there was a useful decision today on cash van , where in , AAAR,Mah held Cash is Goods for Cash carry van- in this CMS Info systems Ltd , this case travelled from AAR to HC to AAAR and its GST credits are allowed, so for Ambulance also finer reading of MV act leads to omni bus/transport vehicle specially carved out from MV(28) into motor car( 26) and from motor car to omni bus(29) and transport vehicle(47) also RTO charges differently for car and ambulance so proves clear intention is to distinguish both, also ambulance seen under separate HSN 8703 2192 - mentions "specialised transport vehicle like ambulance, prison vans and like" under 8703 - Motor car & Other MV so there is a substance over form , in prime 17(5)(a) catchment escape for Ambulance, also 17(5)(b) route will involve indirect ways , possible but with undue complexities as regards non taxable ambulance services , as its not supply for Co. and spend is statutory spend and is for business , it will pass through eligibility test as well Topic is complex but seems feasible with some more solid base Thanks , Vipul D Jhaveri - vdjmum@gmail.com

Posted by VIPUL JHAVERI on Jun 30, 2020
Answer ID : 80594

I am of the view that ambulance is used where output service is exempt. Hence by virtue of section 17/18 read with Rule 42/43/44 in case ITC is taken then same has to be reversed.

Posted by Amith Kumar Khadloya on Jul 04, 2020