The Department of Commercial Taxes, Govt. of Bihar on October 30, 2026, issued an amendment to the older notification no. 11/2017- State Tax (Rate), dated June 29, 2017, related to the Input Tax Credit Conditions and GST Rates for Electric Vehicle Services.
The following has been stated:
• The Government has amended the existing GST rate notification to revise input tax credit (ITC) conditions for hotel accommodation, restaurant services, outdoor catering, railway catering and delivery services, with corresponding changes to the definition of a Goods Transport Agency.
• The amendment also introduces a 2.5% State GST rate for passenger transportation in electrically operated vehicles and renting of electrically operated vehicles for passenger or goods transportation, subject to the condition that the cost of battery charging is included in the consideration charged from the recipient. For these services, ITC on inputs and input services is generally restricted, except for specified input services in the same line of business; however, where the supplier of such input service charges State GST above 2.5%, ITC is restricted to the amount calculated at 2.5%. Similar ITC restrictions have been revised for hotel accommodation and outdoor catering services, with illustrative examples clarifying the permissible credit.
• Further, delivery services supplied through an e-commerce operator, including delivery relating to goods supplied through an e-commerce operator, are prescribed at 2.5% State GST subject to non-availment of ITC.
• The definition of “electrically operated vehicle” has also been inserted to include road vehicles running solely on electrical energy derived from an external source or fitted electrical batteries, including e-bicycles.
• The amendment also omits paragraph 3 and revises the definition of “goods transport agency” to cover persons providing road transportation of goods and issuing a consignment note.
• The amendment shall come into force with effect from November 01, 2026.
[Notification No. - 06/2026- State Tax (Rate)]
