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can claim gst credit on bike purchase

Sagar (Co Owner V.G Vegetables Article Mevada & co.) (140 Points)

15 July 2018

A normal business can claims gst on bike purchase which is used for office only.

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8 Replies

Roller coaster (120 Points)
Replied 15 July 2018

No you cannot unless u r using bikes for ur business like transportation of goods or passengers or for bike training or any other way in your business

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 15 July 2018

Yes, you can claim ITC on motor bike if used for business Purpose.
Section 17(5)(a) of the CGST Act restricts the input tax credit in respect of motor vehicle but
motor vehicle include vehicle having more than four wheels but does not include vehicle used in factory or closed premises. 2 wheelers or 3 wheeler are not covered within definition and accordingly if 2 wheelers or 3 wheelers used for the business purpose input tax credit would be available

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 15 July 2018

No you cannot take ITC as per section 17(5)

ITC will be available when the vehicle is used for the following.

a) Supply of other vehicles or conveyances
b) Transportation of Goods/Passenger
c) Imparting training on driving, flying, navigating such vehicle or conveyances

Vinod Babu (24191 Points)
Replied 15 July 2018

No, you can not claim the ITC of GST paid on purchase of Motor bike for office use in the field. Please refer the following relevant excerpt of CGST Act Section 17 (5) (a)

Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:—

(a) motor vehicles and other conveyances except when they are used–– (i) for making the following taxable supplies, namely:—

(A) further supply of such vehicles or conveyances ; or

(B) transportation of passengers; or

(C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods

GST can be claimed for vehicles only if (i) they are bought for resale, and (ii) they are bought for use in transporatation of passengers; (iii) they are bought for use in teaching of driving such vehicles.

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Dipesh jain (2 Points)
Replied 05 June 2019

No, you cannot avail ITC of Bike. As per Sec 2(28) of Motor Vehicle Act, Motor Vehicle includes every vehicles with engine capacity more than 25CC.

Accordingly, as per GST Act, definition of Motor vehicle is same as provided under Sec 2(28) of MV Act;

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Rahul Gupta (ADVOCATE ) (30 Points)
Replied 02 August 2019

“motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding 4[twenty-five cubic centimetres]; 1[twenty-five cubic centimetres];"

Since the motor bikes or scooties which are purchased for official purpose, and are covered under the definition of Motor Vehicles, credit will not be allowed since today’s these vehicles are more than the specified limit of 25cc.

1 Like

SUNIL GUPTA (PARTNER) (22 Points)
Replied 29 November 2021

Jise Ki Company Ki malik My hu aur Personal use ke liye Motor Bike Purchase Kiye Hai

Espe Hum Input Claim Kar Sakte hai

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 29 November 2021

Agree with Rahul, Dipesh, Vinod. ITC on 2 wheelers to be seen on par with 4 wheelers. If ITC on goods not eligible, ancillary services credit (insurance, repairs) also not eligible & vice versa.

Other ITC conditions - Ensure valid tax invoice, receipt of goods, GSTR 2A/2B reflection, full payment to vendor and filing of GSTR 3B.