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GST input claim on Motorcycle

mahesh mehta (28 Points)

10 October 2017

i bought one motor bike in my company name. shall i got input claim?

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10 Replies

Harsh Singal (46 Points)
Replied 10 October 2017

yes of course why not

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Vinod Araveti (Practicing CA) (1180 Points)
Replied 10 October 2017

Dear Mahesh,

As per Section 17(5)(a) of CGST act 2017, Input credit is not allowed on motor vehicles and other conveyances except 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;

So if you are using for any purpose other than above then credit is not allowable

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mahesh mehta (28 Points)
Replied 11 October 2017

thanks to mr.Harish Singal as well as mr.Vinod Araveti.

Sujit Saha (243 Points)
Replied 11 October 2017

What about if it is for the furtherance of business. If it used for business relating job,... I think ITC can be claimed

mahesh mehta (28 Points)
Replied 11 October 2017

ithanks sir. its used for to reach office from home and vise versa.

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Sujit Saha (243 Points)
Replied 11 October 2017

Than, ITC not available. It's personal use. By the way, thanks

Muralidharan Rajalingam (209 Points)
Replied 11 October 2017

The law is clear that if the vehicle is used directly for purposes listed yes.

Chandrasekhar Kutty (CA) (30 Points)
Replied 11 October 2017

Yes the motor vehicles if used for any of the purposed mentioned in exceptions in section 17(5) only will be allowed as input. So for the limited purpose of motor bikes only if you a dealer in buying and selling the bikes then only input can be claimed. Other things like transportation of goods / passengers or imparting training may not be applicable for bikes. If you are using for business purpose unless you are a dealer in selling bikes input shall not be available.