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Credit on motor vehicle

Harish purohit (audit manager) (38 Points)

28 March 2018

vehicle is registered on the name of company and repair charges incurred on and the party charge GST on repair bill whether credit will be available or not ?

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13 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 March 2018

no, no credit under sec 17(5)

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Ankit Garg (Chartered Accountant) (73 Points)
Replied 28 March 2018

Credit availability depand on use of vehicles. Plesae specify vehicles use.

Harish purohit (audit manager) (38 Points)
Replied 28 March 2018

personal purpose

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 28 March 2018

You can take the ITC for that repair bill... ITC is available ...

Ankit Garg (Chartered Accountant) (73 Points)
Replied 28 March 2018

As per section 17(5)(g), ITC not allowed if goods or services used for personal consumption.

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Harish purohit (audit manager) (38 Points)
Replied 28 March 2018

but vehicle is registered on tha name of the company

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 28 March 2018

As per section 17(5) of CGST, restriction on availment of ITC is only in the case of purchase of motor vehicle whereas there is no restriction on repair and insurance taken on motor vehicle... So he can take the itc for that repair bill...

Ankit Garg (Chartered Accountant) (73 Points)
Replied 28 March 2018

Section 17(5)(a) also restrict credit on motor vehicle.

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 28 March 2018

Originally posted by : Ankit Garg
	Section 17(5)(a) also restrict credit on motor vehicle.

This case is based on the repair& maintenance bill... so there is no such restrictions in the case of repair & maintenance.. The vehicle is registered with the name of the company... They can definitely claim that itc for that repair bill...

Rishi (NONE) (163 Points)
Replied 28 March 2018

ITC CANNOT BE CLAIMED SINCE VEHICLE IS USED FOR PERSONAL PURPOSE, MOREOVER: ITC is not available for motor vehicles and conveyances.

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CA Aravind Penugonda (Chartered Accountant) (311 Points)
Replied 28 March 2018

As per Sec. 17 (5) of CGST Act, credit restriction is placed on motor vehicle but not on insurance charges and repair services. Hence, insurance and repair are eligible for claiming ITC. However, in the instant case, since company uses the motor vehicle for personal purposes, ITC cannot be claimed.

Hope it is clear!!

Harish purohit (audit manager) (38 Points)
Replied 28 March 2018

thanks

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 March 2018

input tax credi.t shall not be available in RESPECT OF the following,
namely:—
(a) motor vehicles and other conveyances excep

above is from sec 17(5), in "IN RESPECT OF" according to me means in relation to.

Now why it is not written on Purchase of Vehicle .

So in short , any expenses related to vehicle is disallowed