if one is buying a vehicle and want to use it for business (other than gta ) can he get the itc of such vehicle purchased. if yes the what are the basis after taking into consideration of section 17 subsection 5 and section 16 with rules of CGST ACT 2017.
PLEASE CLERIFY
If the Vehicle is being used for "Transportation of Goods", then you can avail ITC on that Motor Vehicle.
As per the Provision of Section 17(5) of the CGST Act 2017, ITC on Motor Vehicles having approved seating capacity of 13 Persons ( including the Driver ) is BLOCKED. However if the motor vehicle is being used for the following specified purposes, then you can avail ITC on Motor Vehicles :
(a). Further Supply of such vehicles or conveyances, vessels or aircrafts.
(b). Transportation of Passengers.
(c). Imparting training on driving, flying, navigating such vehicle or conveyances or vessels or aircrafts, respectively and
(d). "Transportation of Goods."
And Section 16(2) of the CGST Act 2017 states that a person will be eligible to claim ITC on Goods or Services only when the following "FOUR CONDITIONS" are satisfied :
(1). Possession of a Tax Invoice.
(2). Received the Goods or Services.
(3). The Supplier must have paid the taxes to the Government exchequer, and
(4). Recipient must have filed the Return.
Regards,
Shivam RC.
CAclubindia
