credit avail on insurance

As per section 17(5) of CGST Act, ITC shall not be available in respect of Motor vehicle and other conveyance, except

(a) For making following taxable supplies

1) further supply of such vehicle or conveyance OR 

2) Transportation of passengers OR

3) imparting training driving, flying, navigating such vehicle or conveyance 

(b) For transportation of goods.

As you have purchased a new car for company purpose and you do not provide any of the above Taxable Supplies you can not get ITC on car purchase.

No... ITC not available.

how sir, the car is registered in company name and using for company purpose only, then we can avail the credit on car insurance

am right sir

Better to understand the sec 17(5) of CGST act. Then you can get some clarity...

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 If you are into the business of renting / leasing car/ Conveyence / Training ----> Yes can claim ITC input credit on both car and Insurance premium. However if you are in some other business, where the car is used for furtherance of business ----> you cannot claim ITC on Car only, but ITC on insurance & other accessories is not blocked. Therefore there is no restriction on ITC towrds Insurance paid .so you can claim ITC on insurance premium.

ok sir thank you

plz read the cluse "in respect of of Motor Vehicle" means any expenses related to car is block under section 17(5) , hence no ITC available on insurance of car