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How to avsil input tax credit on commercial vehicles.

08 February 2018

Dear sir, we are fleet owners. We give goods transportation services. We are registered under GST. If I want to take input tax credit which I have paid on the purchase of Vehicle's then what I have to do ? As the GST for by road transportation is exempted then can I avail my vehicles GST credit against my trading output tax. (My liability arising out of trading goods)

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17 Replies

Heena mangtani (Chartered Accountant) (272 Points)
Replied 08 February 2018

are you involved in transpiration of such goods ,which are exempted under gst

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Ramkrishna bhosale (26 Points)
Replied 08 February 2018

No, i am transporting goods which are taxable under GST. we procure soyabean (oilseed) directly from farmer and deliver it to oil processing company. we charge 5% GST on that. So can I take set off for my liability ?

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Heena mangtani (Chartered Accountant) (272 Points)
Replied 08 February 2018

yes you can take set off for your liability , provided if RCM is not applicable.

Ramkrishna bhosale (26 Points)
Replied 08 February 2018

RCM on what ? i am sorry but I didn't understood. Can you please elaborate because this is very important for me.

Ramkrishna bhosale (26 Points)
Replied 08 February 2018

we procure soyabean directly from farmer and billing it to oilmill in GST. The item is taxable @ 5%. So we are charging 5% GST to oil mill . We only give material invoice to buyer. So I want to avail the set off for this liability. As I am collecting GST from oilmill i am supposed to pay it to the government but I want to know if I can take set off against the GST PAID ON THE PURCHASE OF MY COMMERCIAL VEHICLE. PLEASE EXPLAIN.

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Heena mangtani (Chartered Accountant) (272 Points)
Replied 08 February 2018

u only give material invoice ..it means you are not charging gst ..that means the case is covered under RCM.

Ramkrishna bhosale (26 Points)
Replied 08 February 2018

i am charging 5% GST in invoice. Only material means i am not charging any transportation cost in it.
3000 ₹ soyabean
150 ₹ @ 5% rate GST.
I am collecting 150 per 100 kg as GST.

Heena mangtani (Chartered Accountant) (272 Points)
Replied 08 February 2018

you are purchasing oilseeds from farmer . and then selling it to company ..right?

Heena mangtani (Chartered Accountant) (272 Points)
Replied 08 February 2018

you are charging for material ..that means you are supplying material and charging gst ..it is not a goods transport service at all.
now if you you want to set off your gst liability with gst paid on purchase of vehicle ..yes u can set it off ..bcoz if we use any vehicle in our business for transportation of goods , we can claim itc on it .
I have given answer on best of how I understood your query .
Even after that if there is any confusion ..text me your no. , I will make u understand.

Ramkrishna bhosale (26 Points)
Replied 09 February 2018

9822843668

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Ramkrishna bhosale (26 Points)
Replied 09 February 2018

Actually there is lot of confusion for GST in transportation .

Ramkrishna bhosale (26 Points)
Replied 09 February 2018

Heena ji, please contact me or text me your contact number.

(Guest)

Sir,

if a Company (who is not a GTA) purchases a motor vehicle for transporting its finished goods, can the company take Input tax credit?

Rohan Bagra (406 Points)
Replied 24 May 2018

RAJIV JI ONLY MOTOR DRIVING ENTITY, TRANSPORTERS OF GOODS, TRANSPORTER OF PASSENGERS, AND DEALERS OF MOTOR VEHICLES ARE ALLOWED TO TAKE CREDIT FOR GST PAID ON THE MOTOR VEHICLE PURCHASED.

SO IN YOUR QUERY COMPANY CANNOT TAKE CREDIT FOR THE SAME.......