GST INPUT
Yogesh (Finance Controller) (104 Points)
14 July 2018
we purchased a new car in hotel industry. we can take ITC of GST ?
1 Replies
sheik javid
(student)
(281 Points)
Replied 14 July 2018
No, you cannot claim ITC for vehicle
As per section 17(5) of CGST Act, input tax credit will not be available in respect of motor vehicles and other conveyances, except when
such motor vehicles or other conveyances are supplied further, or
used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or
are used for transportation of goods.
Hence, if your firm does a business that falls under any of the categories mentioned above, it can claim the input tax credit.
Remember, both input tax credit of GST paid on purchase of such capital goods and depreciation u/s Income Tax Act 1961 will not be allowed together. You can either claim input tax credit of GST, or depreciation u/s Income Tax Act 1961.
As per section 17(5) of CGST Act, input tax credit will not be available in respect of motor vehicles and other conveyances, except when
such motor vehicles or other conveyances are supplied further, or
used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or
are used for transportation of goods.
Hence, if your firm does a business that falls under any of the categories mentioned above, it can claim the input tax credit.
Remember, both input tax credit of GST paid on purchase of such capital goods and depreciation u/s Income Tax Act 1961 will not be allowed together. You can either claim input tax credit of GST, or depreciation u/s Income Tax Act 1961.
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