ITC is not available on ambulance purchased for employees prior to 01/02/2019 even if obligatory under Factories Act,1948: AAR West Bengal

ITC is not available on ambulance purchased for employees prior to 1st Feb 2019 even if obligatory under Factories Act, 1948.

Back Ground:

Aassessee, a manufacturer of agriculture machine bought ambulance on 22/11/2018 for employees as it was obligatory for him under Factories Act, 1948. Before 1st Feb 2019.  

As per Section 17(5), the Input tax credit was not allowed on the above, however amendment Act, exception carved out under Section 17(5)(b)(iii)(A) of the GST Act for services which are obligatory for an employer to provide to its employees under any law for the time being in force is limited only to rent-a-cab, life insurance and health insurance. 

Assessee wants to avail the credit of the ambulance as mentioned above.

Held:

Eligibility for claiming the input tax credit under section 16(1) is subject to the provisions of law at the time of occurrence of the taxable event, irrespective of when the claim is made. The second proviso to section 17(5)(b) of the GST Act, as it stands post-amendment effective from 01/02/2019, is not applicable to a transaction made in November 2018.

The Input tax credit is not admissible on the ambulance purchased in November 2018.