We have company registerd car used by director. The car service and tyre change invoice given by dealer has our company GST number printed in it. Can we take GST credit? Also, can we take insurance premium paid on this car GST credit?
7 Replies
Rishi
(NONE)
(163 Points)
Replied 20 May 2018
No, Credit is allowed On motor vehicles
See Section 17 Of CGST Act 2017
See Section 17 Of CGST Act 2017
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 20 May 2018
You can... if it's furtherance of business.
Clause (a) to section 17 (5 ) , declares motor vehicles and other conveyances as blocked credit, subject to certain exceptions. Accordingly no ITC is available in respect of motor vehicles.Restriction on ITC benefit in respect of motor vehicle DOES NOT get extended to repairs, insurance etc. for motor vehicles and as such there is no bar in availability of ITC on these services.
Clause (a) to section 17 (5 ) , declares motor vehicles and other conveyances as blocked credit, subject to certain exceptions. Accordingly no ITC is available in respect of motor vehicles.Restriction on ITC benefit in respect of motor vehicle DOES NOT get extended to repairs, insurance etc. for motor vehicles and as such there is no bar in availability of ITC on these services.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 20 May 2018
No you cannot take ITC for the same
Ferdous
(advocate tax consultants)
(80 Points)
Replied 23 May 2018
it is better to take credit of insurance premium paid and on maintanance of car. However, as per law if ITC is paid for making or acquiring immovable property then no ITC is allowed. For car used for business ppurposes like you said is allowed.
Jigar
(employee)
(38 Points)
Replied 24 May 2018
Hi All - thanks for your inputs. But as you all can read, there are mix opinions.
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