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GST ITC

Gurjeet (Accounts) (107 Points)

10 June 2018

are we avail ITC on factory own Truck Tyres which use carry the business goods.

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Ravi SADhiyan (Practice) (4510 Points)
Replied 10 June 2018

Originally posted by : Gurjeet
	are we avail ITC on factory own Truck Tyres which use carry the business goods.

You Can availed ITC

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Gurjeet (Accounts) (107 Points)
Replied 10 June 2018

what if the Tyre dispose off are reversed avail ITC.

GST Consultant (Tax Consultant) (894 Points)
Replied 10 June 2018

agreed with Mr. Ravi, GST credit will be available since its a business expenditure.

Gurjeet (Accounts) (107 Points)
Replied 10 June 2018

Thanks to all members very fast reply...Thanks...

Vinod Babu (24191 Points)
Replied 10 June 2018

The Relevant portion of Section 17(5) is reproduced below as under:

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-

(a) 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;

If we go through the starting line of it says that notwithstanding anything contained in Sub-section 1 of Section 16.......

input tax credit shall not be allowed in respect of the following......

Section 16(1) speaks about availability of input tax credit on goods or services or both used for furtherance of business. Section 17(5) starts with the word notwithstanding anything contained in subsection (1) of Section 16, which means that irrespective anything contained in Subsection 1 of Section 16, input tax credit shall not be allowed in respect of motor vehicles, these input tax credit may be towards purchase of motor vehicle or any service rendered in respect of such motor vehicles.

so input tax credit on repair and maintenance of motor vehicle is not allowed.

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Gurjeet (Accounts) (107 Points)
Replied 10 June 2018

Dear Vinod Babu I really appreciate your comment but here we are talking about TYRE which use in furtherance of business goods supply So, The ITC is available on Vehicle Tyres which used in business goods carriage.

Vinod Babu (24191 Points)
Replied 10 June 2018

section 17(5) contains the word 'in respect of' therefore credit shall not be available on repair of motor vehicles.
however if you are using vehicle for transportation of goods u can claim itc for such repairs.
Tyre is considered as repairs if accounted in P&L a/c.

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Gurjeet (Accounts) (107 Points)
Replied 10 June 2018

what is this Vinod Babu . In one post u say not available and in another available.. Simply say non business use not available and for purely business use all ITC available.. related goods vehicle.

Vinod Babu (24191 Points)
Replied 10 June 2018

I mentioned both the scenarios.
First I told no itc when not used in transportion of goods
Secondly when it is used in transportion of goods, then itc can be claimed.

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Gurjeet (Accounts) (107 Points)
Replied 10 June 2018

Thanks from heart to all participants... Specifically Vinod Ji....

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Ravi SADhiyan (Practice) (4510 Points)
Replied 10 June 2018

Originally posted by : Gurjeet
	what is this Vinod Babu . In one post u say not available and in another available.. Simply say non business use not available and for purely business use all ITC available.. related goods vehicle.

Dear Gurjeet

Vinod Sir give Opinion in both conditions

So You take benefit of Vinod Sir Opinion and Don't an argument