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GST on Car purchase

karthikrao (B.com CS(inter) -ongoing) (170 Points)

16 November 2017

Sir,Can avail input purchase of New car for Business purpose.

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CA SUDHINDRA D S (Practising CA) (761 Points)
Replied 16 November 2017

gst on car is not allowed unless you are
1. trader of car or
2. using car for transportation of passengers.

No other businesses can claim input tax credit on purchase of car

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Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 16 November 2017

Sec.17(5) of CGST Act - 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;

So, if you are using your car for abovesaid purpose, you can avail ITC.

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