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Gst on vehicle purchase

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)

06 March 2019

A person buy one TATA ACE and one Bolero for his business, that means he bring stocks from various places, vegitable and fruits.

Can he claim GST in his returns as ITC? if he claims GST, Whether can he avail Depreciation for that vehicles in Incometax?

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5 Replies

CA CS Chirag (Practicing CA) (834 Points)
Replied 06 March 2019

GST on vehicle is not available except when it is used for
1. supply of other vehicle or conveyance
2. transportation of passengers
3. imparting training on such vehicles
4. transportation of goods

depreciation is allowed on cost after reducing GST if credit of GST is availed

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MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 06 March 2019

ok thankyou, in here we use for transportation of goods only, so , we can avail gst.

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 07 March 2019

if i claim that Vehicle purchase itc can i claim refund?

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 07 March 2019

Vehicles used for transportation ( to prove) should be eligible for ITC. Proof may include registration under RTO for such purpose. No refund- only adjustment against taxable services to the proportion of taxable to exempt ( see rule 42)