Input tax credit conditions for concessional service rates permit limited same-line credits for hotels, catering, and electrically operated vehicle services.
Notifications
GST
Input tax credit conditions for specified service rates are revised to allow restricted credit for same-line business supplies while generally denying credit on other inputs and input services. Hotel accommodation and outdoor catering suppliers may claim same-line input-service credit only up to central tax payable at 2.5% where their supplier charges a higher rate; stated same-line credit exceptions also apply to restaurant and railway food supplies. Passenger transport and rental of electrically operated vehicles, including goods-transport rentals, are inserted at 2.5% central tax where battery charging is included, subject to comparable ITC limits. Specified delivery services in e-commerce arrangements receive the 2.5% rate subject to no-ITC conditions. Definitions of goods transport agency and electrically operated vehicle are revised, effective 1 November 2026.
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