Can we Claim ITC on motor vehicle purchases when TCS is payable?

25 December 2018

CAN WE CLAIM ITC ON MOTOR VEHICLE PURCHASES WHEN TCS IS PAYABLE? (purchased by GTA for tranportation of goods)

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4 Replies

ANIMESH CHOWDHARY (Practicing CA) (305 Points)
Replied 25 December 2018

If GTA pays GST @ 12% on forward charge basis, then only he is eligible to avail ITC on motor vehicle.

pritesh (CA Final student) (7101 Points)
Replied 25 December 2018

Yes if he is register and not covered under RCM or 5% tax rate.

Arunn Auto Sparess (203 Points)
Replied 25 December 2018

claim on load carrier only not for own use of car or any two wheelers

Ravi Kumar Somani (Indirect Taxes Specialization) (3893 Points)
Replied 25 December 2018

Yes, credit shall be available for GTA. However, such GTA must be covered under forward charge and pay GST @ 12%.

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