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Gst credit on purchase of car

MILAN B. SHAH (consultant) (152 Points)

18 April 2018

Can one take Gst credit on new purchased capital items (ex. car ) against Gst payable on professional fees?

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10 Replies

(Guest)

Yes, but not of car's.

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RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 18 April 2018

No... GST credit not available for purchase of Car.

yashoda somani (article) (4 Points)
Replied 18 April 2018

No credit avai

MURALI KRISHNAN C (ACCOUNTANT) (41 Points)
Replied 18 April 2018

In case of a company, can we take input credit on the repairs of the cars.

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 18 April 2018

@ Yashoada.,

Yes... You can avail the ITC benefits if the Car is used in furtherance of business.

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Ajay (CA Job) (512 Points)
Replied 19 April 2018

Dear Milan

As a general principle of GST, you can take ITC on Capital Goods, that too, in the first year itself provided you satisfy the conditions specified u/s 16 (2) of CGST Act, 2017 and other rules. But the motor vehicle is a special case as it falls in the negative list given u/s 17(5).

So, when it comes to the motor vehicle, the general rule is that you are not eligible to take ITC. However, you can take ITC for the motor vehicle if:

you are a dealer in motor vehicles and such motor vehicle is your stock-in-trade;
it is used for the transportation of passengers/goods; or
it is used to impart training in driving the motor vehicle (that is, you are running a driving school).

Regards

Ajay

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MURALIDOSS (INCOME TAX PRACTITIONER) (1309 Points)
Replied 19 April 2018

IF A PROPRIETOR BOUGHT CAR FOR HIS BUSINESS ALSO HE WAS A GST REGISTERED PERSON, BUT MY QUESTION IS IF WE CLAIM IN GST THE INPUT, INCOME TAX CAN CLAIM DEPRECIATION?

JACK B (Sr.executive) (56 Points)
Replied 19 April 2018

YES.....YOU CAN TAKE.

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 19 April 2018

@ Mr. MURALIDOSS.,

GST input not available if purchased the car by proprietorship or Partnership or Company or LLP or any other formats except it's related business activities....

But,
Income tax view we can book the whole value of asset and we can claim depreciation for the asset value...

MURALIDOSS (INCOME TAX PRACTITIONER) (1309 Points)
Replied 20 April 2018

this car bolero he bought for transportation of goods from trichy to thanjavur.fruits and vegitables sir. In his receipt they also mentioned his GSTNUMBER.Thats why he ask me to claim sir, can I claim the tax as input?