Can avail itc on motor car purchased for a director

This query is : Resolved

Bazeer Ahmed (Querist)
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14 December 2017 Sir(s),
We are in textile sector business, now we propose to purchase a car for our Managing Director in the name of our Company. Kindly clarify that can we claim ITC on the GST charged on the car invoice? .
If we claim itc mistakenly then what will be the consequences? shall we just reverse the credit taken by mistake?

Thanks in advance,

With regards,
Bazeer Ahmed L

Udaya Chandran

Udaya Chandran (Expert)
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14 December 2017 ITC is not available on motor car in this case. You can amend the details in returns and pay the duty along with interest equal to the ITC adjusted.

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