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ITC Claim on Insurance of Motor Vehicle

Jyoti (Student CA IPC / IPCC) (111 Points)

07 February 2019

Can we take ITC ON insurance of vehicle in non-transportation business ?

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23 Replies

Saravana kumar (Tax Consultant) (170 Points)
Replied 07 February 2019

If Vehicle Capacity more than 13 seater, then ITC on Insurance is eligible. if less than 13 seater vehicle then not eligible

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Jyoti (Student CA IPC / IPCC) (111 Points)
Replied 07 February 2019

It is used for transportation of goods

Saravana kumar (Tax Consultant) (170 Points)
Replied 07 February 2019

You can avail ITC, if it is used for Transport of Goods purpose.

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CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 07 February 2019

As per my opinion ITC on insurance of motor vehicle used for the purpose of transportation of goods is not available as per CGST Amendment act 2018.But Govt has not notified the applicability of section 17 of amendment act.Hence you can take ITC on insurance of Motor Vehicle.

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 07 February 2019

As per my opinion ITC on insurance of motor vehicle used for the purpose of transportation of goods is not available as per CGST Amendment act 2018.Hence you cannot take ITC on insurance of motor Vehicle. Refer: Section 9 of CGST Amendment Act 2018 Thanks

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Saravana kumar (Tax Consultant) (170 Points)
Replied 07 February 2019

Dear Pankaj ji, In ref Act ,

""(aa) vessels and aircraft except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods; ""

As per Above ITC not available only except it is used for above scenario. Then we can avail if it used for the purpose of " "Transportation of Goods ".

Please reply if it is wrong.

Mondira Saha (GST) (3925 Points)
Replied 07 February 2019

yes you can take ITC and also you can claim insurance and expenses ITC on it

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Muhammed (Chartered Accountant) (251 Points)
Replied 07 February 2019

As per the recent amendment applicable from 1st February, 2019

ITC on Insurance on motor vehicles cannot be claimed unless the same is used for transportation of passengers which has a seating capacity of more than 13.

In this case ITC cannot be claimed

Regards

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Mondira Saha (GST) (3925 Points)
Replied 07 February 2019

in this query jyoti ji mention non transport business ... no ITC on it ...

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Saravana kumar (Tax Consultant) (170 Points)
Replied 07 February 2019

Dear Muhammed ji, in Amendment act only Transportation of Passengers provision are amended. For the case of Transportation of goods no amendment, either prior to amendement act or now we eligible to Avail ITC on Transporation of goods vehicle.

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CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 07 February 2019

Dear Saravana Sir, According to my point of view as per recent amendment in CGST Act "Motor Vehicle Used for transportation of goods has been exclude from exception given under clause (a) of sub section 5 of section 17. However we can take ITC on insurance of vessel/ aircraft if they are used for transportation of goods as given in pont (ii) of clause (aa) of sub section 5 of section 17 of cgst act. Please reply me if i am wrong. Thanks

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