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GST ITC ON VEHICLE "THAR"

Hitesh Patel (Manager Accounts) (37 Points)

17 May 2021

private limited company has purchased a new vehicle Mahindra THAR.
could we take GST ITC?

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6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 17 May 2021

No ITC unless it is used for the following:

Further supply

Transportation of passengers

Imparting training on driving of such motor vehicle

Transportation of Goods

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Goutam Hebbar (Articled Assistant) (53 Points)
Replied 17 May 2021

Section 17(5)
Notwithstanding anything contained in sub-section (1) of section 16 and
sub- section (1) of section 18, input tax credit shall not be available in respect of the
following, namely:—

(a)
[motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except when they are
used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;

Unless you are into the business of Motor Vehicles or into transportation business you can't claim ITC.

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Ravinder Singh (Direct & Indirect Taxation professional) (110 Points)
Replied 17 May 2021

It is Available but some conditions applicable...please read in para 9. In section 17 of the principal Act,––
attached amendment act 2018

THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018

Provided that the input tax credit in respect of such services shall be available—
(i) where the motor vehicles, vessels or aircraft referred to in
clause (a) or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged—
(I) in the manufacture of such motor vehicles, vessels or
aircraft; or
(II) in the supply of general insurance services in respect of
such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery, leasing, renting or hiring of motor
vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except
when used for the purposes specified therein, life insurance and health
insurance:

Provided that the input tax credit in respect of such goods or services
or both shall be available where an inward supply of such goods or services
or both is used by a registered person for making an outward taxable
supply of the same category of goods or services or both or as an element
of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as
leave or home travel concession:
Provided that the input tax credit in respect of such goods or services
or both shall be available, where it is obligatory for an employer to provide
the same to its employees under any law for the time being in force.”

Attached File : 379606 20210517170405 the central goods and services tax amendment act 2018 .pdf downloaded: 128 times

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 17 May 2021

ITC can be claimed if the vehicle is used for furtherance of business

1 Like

RENU SHARMA (1388 Points)
Replied 17 May 2021

Agree

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CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 17 May 2021

ITC cannot be claimed unless used for further supply of service of transportation of passenger or service of training or for further supply of vehicle