ITC Available On Motor Vechile

Input tax credit shall not be available in respect of the following:

Amended Sec. 17(5)(a) w.e.f. 01.02.2019

motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:—

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;

It means:

ITC relating to any vehicle with approved seating capacity of more than 13 persons (including driver) is eligible.

Further, ITC is allowed for vehicles, when they are used to make the following taxable supplies:

• further supply of such motor vehicles
• transportation of passengers
• imparting training on driving such motor vehicles