Gst itc on purchase of bike

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2018 Dear Experts,
We are in service industry. We do provide service at customer residence hence vehicle is is needed. For traveling/conveyance for business purpose we are going to buy a bike. Pls clarify :- can we avail the ITC of GST paid on purchase of bike,

Thanks & Regards
Dilip Awasthi

CA Himanshu Ojha

CA Himanshu Ojha (Expert)
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26 May 2018 Under section 17(5) of CGST Act, there are certain supplies on which input tax credit under GST is not available. These supplies can also be said as blocked credit.

1. Motor vehicles and other conveyances except when they are used

a) For making further supply of such vehicles or conveyances ---> N.A. for in your case

b) Transportation of passengers ---> N.A. for in your case

c) Imparting training on driving, flying, navigating such vehicles or conveyances---> N.A. for in your case

d) For transportation of goods. ---> N.A. for in your case

Hence, you cannot claim ITC on bike