Input on car spare parts
This query is : Resolved
16 August 2022
sir,
While checking 2B, There is an input in relating to repair of car which is used by Owner for
business purpose .
can we claim that input
with regards
Binu
While checking 2B, There is an input in relating to repair of car which is used by Owner for
business purpose .
can we claim that input
with regards
Binu
16 August 2022
Yes, ITC on repairs and maintenance of vehicle used for business purpose can be claimed.
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17 August 2022
ITC cannot be taken until its a commercial vehicle (used for transportation of goods) or its seating capacity is more than 13 persons. There are other exceptions also
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01 August 2024
Under GST, the eligibility to claim input tax credit (ITC) on expenses such as tyres and wheel alignment depends on the nature of the expense and its use in the business. Here’s a breakdown:
### 1. **Tyres:**
- **For Vehicles Used in Business:**
- If the tyres are used for vehicles that are part of your business (e.g., delivery trucks, vehicles used for business operations), you can generally claim ITC on the purchase of tyres.
- This applies if the vehicles are used in the course of furtherance of business.
- **For Personal Use Vehicles:**
- If the tyres are for vehicles not used in business (personal vehicles), ITC is not allowed.
### 2. **Wheel Alignment:**
- **For Business Vehicles:**
- If wheel alignment services are performed on vehicles that are used in the course of business (e.g., trucks, delivery vehicles), you can claim ITC on the wheel alignment services. This is because these services are considered necessary for maintaining the business assets (vehicles).
### **Relevant GST Rules and Sections:**
1. **Eligibility Criteria for ITC:**
- **Section 16(1) of the CGST Act:** ITC is available on goods and services used or intended to be used in the course or furtherance of business.
- **Rule 32(5) of the CGST Rules:** Defines the terms and conditions under which ITC can be claimed on input services related to business operations.
2. **Documentation:**
- Ensure that you have valid tax invoices for the purchase of tyres and wheel alignment services.
- The invoices should be in your name or the name of your business, with the GSTIN mentioned.
### **Practical Application:**
- **Tyre Purchase Entry:**
- When purchasing tyres for business vehicles, record the purchase in your accounting books and claim ITC on the invoice amount.
- **Wheel Alignment Entry:**
- For wheel alignment services, ensure that the invoice includes GST details and record it as a business expense to claim ITC.
### **Example:**
If you purchase tyres for ₹10,000 with GST @18% (₹1,800), and you are using the vehicle for business purposes:
- **Claimable ITC:** ₹1,800
If you have wheel alignment services costing ₹2,000 with GST @18% (₹360):
- **Claimable ITC:** ₹360
### **Consultation and Further Reference:**
- For precise details and compliance, consult the latest GST notifications or seek advice from a tax professional. The official GST portal or professional guidance will provide updates and ensure that you adhere to current rules and regulations.
Always ensure that the expenses are directly related to the business operations to be eligible for ITC under GST.
### 1. **Tyres:**
- **For Vehicles Used in Business:**
- If the tyres are used for vehicles that are part of your business (e.g., delivery trucks, vehicles used for business operations), you can generally claim ITC on the purchase of tyres.
- This applies if the vehicles are used in the course of furtherance of business.
- **For Personal Use Vehicles:**
- If the tyres are for vehicles not used in business (personal vehicles), ITC is not allowed.
### 2. **Wheel Alignment:**
- **For Business Vehicles:**
- If wheel alignment services are performed on vehicles that are used in the course of business (e.g., trucks, delivery vehicles), you can claim ITC on the wheel alignment services. This is because these services are considered necessary for maintaining the business assets (vehicles).
### **Relevant GST Rules and Sections:**
1. **Eligibility Criteria for ITC:**
- **Section 16(1) of the CGST Act:** ITC is available on goods and services used or intended to be used in the course or furtherance of business.
- **Rule 32(5) of the CGST Rules:** Defines the terms and conditions under which ITC can be claimed on input services related to business operations.
2. **Documentation:**
- Ensure that you have valid tax invoices for the purchase of tyres and wheel alignment services.
- The invoices should be in your name or the name of your business, with the GSTIN mentioned.
### **Practical Application:**
- **Tyre Purchase Entry:**
- When purchasing tyres for business vehicles, record the purchase in your accounting books and claim ITC on the invoice amount.
- **Wheel Alignment Entry:**
- For wheel alignment services, ensure that the invoice includes GST details and record it as a business expense to claim ITC.
### **Example:**
If you purchase tyres for ₹10,000 with GST @18% (₹1,800), and you are using the vehicle for business purposes:
- **Claimable ITC:** ₹1,800
If you have wheel alignment services costing ₹2,000 with GST @18% (₹360):
- **Claimable ITC:** ₹360
### **Consultation and Further Reference:**
- For precise details and compliance, consult the latest GST notifications or seek advice from a tax professional. The official GST portal or professional guidance will provide updates and ensure that you adhere to current rules and regulations.
Always ensure that the expenses are directly related to the business operations to be eligible for ITC under GST.
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