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gst ITC On car

srikumar (audit staff) (1203 Points)

17 September 2018

my client individual or firm purchase car for official use, bill raised at firm name along with gst no.

can I claim input credit on car?

explain sir

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 17 September 2018

No... ITC not available except it's related business activities.

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Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 17 September 2018

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 /individual does a business that falls under any of the categories mentioned above, it can claim the input tax credit.

Narra Siva (29 Points)
Replied 17 September 2018

No input can be claimed.Exception : If the business is transport business or driving school then ITC can be claimed

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Vinod Babu (24191 Points)
Replied 17 September 2018

ITC will be available when the vehicle is used for the following.

Transportation of goods
Transportation of Goods/Passenger
Supply of other vehicles or conveyances

Hence you are using it for tranporting of goods , ITC is available to You

Shivam RC (Student) (23683 Points)
Replied 18 September 2018

ITC cannot be claimed on Motor Vehicle since it is specifically Blocked u/s 17(5) of CGST Act 2017.
There are exception also as mentioned by Rohit Sir.

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