GST Input Tax Credit on Car purchase and other components.

This query is : Resolved

Neha (Querist)
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25 January 2022 Respected Expert
Please guide
Can in any undermentioned cases GST Input Tax credit be taken by a Private Limited Company (engaged in business of manufacturing)
1. Purchase of Car in name of Director
2. Road Tax paid at time of Purchase of Car
3. Insurance paid at time of purchase of Car

Thanks in Advance

R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)
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25 January 2022 Input tax credit on purchase of car, Road tax and Insurance of car only can be availed if Car to be used for :-
i) further supply of such car

ii) transportation of passengers; or

iii) imparting training on driving such motor vehicles;

As in your case, Car has been purchased in the name of director and to be used in the business of manufacturing, it falls under the list of blocked credit. Therefore, input will not be allowed.
Thanks