04 May 2019
ITC not available on Vehicles purchase other than Section 17(5) of CGST Act, 2017, it clearly stipulates that ITC of motor vehicle is available for ‘namely’ services, as per your query the motor vehicle as mentioned by you is not commercially registered under Motor Vehicle Act, therefore, it cannot be used for any commercial purpose such as transportation of passengers or goods.
In my case, the dealer is a leasing company and will be leasing the car to my company and I will be owning the car as an employee. The monthly rental is also charged at full GST and cess. Under this circumstances, I believe the dealer (being a car leasing company can take ITC for used cars provided GST is paid on entire sale value and full rate.