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Eligible Input for purchase of car?

Gopi (Staff) (56 Points)

05 January 2019

We do trading business...its proprietor concern . i have purchase new car... its Gst tax eligible for Input credit??

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7 Replies

CA Vijeta Nathani (Chartered Accountant) (505 Points)
Replied 05 January 2019

Under section 17(5) of CGST Act, there are certain supplies on which input tax credit under GST is not available. These supplies can also be said as blocked credit. That includes: Motor vehicles and other conveyances except when they are used a) For making further supply of such vehicles or conveyances b) Transportation of passengers c) Imparting training on driving, flying, navigating such vehicles or conveyances d) For transportation of goods. Hence, if Car is going to be used for transportation of goods in your trading business, then you may take ITC. However, if that's not the case, GST on car may not be available as ITC.

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 05 January 2019

No... ITC not available for the Purchase of Car if You not dealing it's related business activities...

pritesh (CA Final student) (7101 Points)
Replied 05 January 2019

no it is not available as per section17(5)

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 05 January 2019

no it is not available as per section17(5)

MAHENDRA KUMAR BAGRECHA (FCA) (1402 Points)
Replied 06 January 2019

if it has 13 or more passengers capacity, then you may claim ITC

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 06 January 2019

Yes its in New Amended Act 31,2018 , but its not in force yet .

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CA Roopa Nayak (Specialized in Indirect Taxes) (6721 Points)
Replied 06 January 2019

No. Such car credit is specifically restricted except when vehicle is used for specified purposes

Given below:

Eligible 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[under present GST law]