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Gst input on Cars

sampath (student) (119 Points)

12 December 2018

a car dealer of Honda ..purchased a benz for Business purpose on company Name ? can he avail Gst Input?

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ANIMESH CHOWDHARY (Practicing CA) (305 Points)
Replied 12 December 2018

As per Sec 17(5) of CGST Act, ITC on motor car falls under category of Blocked credit but some of the exemptions are:-

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.

Examples where credit of motor vehicles can be availed: Dealer of vehicles, cab providers, trucks/vehicles used by factories for transportation of goods.

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ANIMESH CHOWDHARY (Practicing CA) (305 Points)
Replied 12 December 2018

But in your case Mr. Sampath, it is not for making further supply of such vehicles or conveyances, you caanot avail credit on Benz that you have purchased in the name of business.

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