Article Assistant
268 Points
Joined May 2015
Respected Divakar Sir
Thanks for your prompt reply,
Inorder to take ITC on any goods, first and foremost condition is, it should be qualified to be a input tax as per 2(62) of CGST act.
Once it is qualified to be a Input tax under aforesaid section, then we have to check the eligibility of ITC as per the provisions of Chapter V of CGST act (Input tax credit).
In this case first of all, whatever the transaction happend between Director and car seller is outof perview of Company books. So it will be input tax to Director not to Company.
Let me explain with small examples:
Exapmle 1). Comapny purchase a car which is in the name of copmany, and invoice given in the name of company. Seller of car collected 10,000 Rs. as IGST. in this case this 10,000 Rs. will be treated as Input tax by virtue of 2(26), but the same shall not be eligible to take credit as ITC by virue of 17(5).
in this case company shall disclose this purchase in GSTR2, and put the same under Bloched credit.
Example 2). Director purschased car, registered in the name of Director itself (present case). first of all it is not the purchase made by the company. so it will not be treated as Input tax as per 2(26).
in this case company no need to show the same in their GST2 at all.
I think now you understood where our opinions are disagreed.
Thanks to all