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Is ITC available

pankaj (auditor) (22 Points)

29 August 2018

Is ITC Available on bike and scooty and also second hand bike and scooty

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7 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 August 2018

Originally posted by : pankaj
	Is ITC Available on bike and scooty and also second hand bike and scooty

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 August 2018

No,... credit is block u/s 17(5) CGST act

Vinod Babu (24191 Points)
Replied 29 August 2018

No. Itc can't be taken.

Shivam RC (Student) (23683 Points)
Replied 29 August 2018

As per the provision of SECTION 17(5) of CGST Act 2017, ITC on Motor Vehicle is Blocked.

VENKATESH M (MANAGER - DIRECT & INDIRECT TAXATION) (75 Points)
Replied 30 August 2018

To understand this point lets read the law as below:- As per Section 17(5) of CGST Act Input tax credit shall not be available in respect of the following, namely:— 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; Now the point is whether Bike and Scooty cover in “motor vehicle” or not? As per Section 2(76) of CGST ACT :- “motor vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988; As per clause (28) of section 2 of the Motor Vehicles Act, 1988:- “motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimeters Here cubic centimeters mean CC engine capacity, Hence Bike and scooty having engine capacity more than specified limit will be covered in motor vehicle and ITC will be not eligible as per section 17(5) CGST ACT.