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ITC on car insurance premium paid

13 December 2018

Dear

Sir/Ma'am
Can we cliam gst input on insurance premium paid for Director's Car which is purchased in the name of the company. Or will it get affected under section 17(5) as blocked credits?

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15 Replies

ANIMESH CHOWDHARY (Practicing CA) (305 Points)
Replied 13 December 2018

I have attached the blocked credit list as per Sec 17(5). According to this, you can avail ITC on car insurance if used by director only for business purpose.

Attached File : 2619186 20181213183333 cases where input tax credit under gst cannot be availed.pdf downloaded: 1686 times

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pritesh (CA Final student) (7101 Points)
Replied 13 December 2018

Clause (a) to section 17 (5 ) , declares motor vehicles and other conveyances as blocked credit, subject to certain exceptions. Accordingly no ITC is available in respect of motor vehicles If you are into the business of renting / leasing car/ Conveyence / Training.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 13 December 2018

Its block any expenses related

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 13 December 2018

ITC related to car is block , hence cannot claim ITC on car , moreover its being clarified in New Amendment Act 31 of 2018 , Dt. 29.8.2018 , that Insurance on car the ITC is block ,the provision of Act is not into force , but we can draw the meaning of "IN REGARD to VEHICLE" in Section 17(5) Of CGST. Act

2 Like

Shivam RC (Student) (23683 Points)
Replied 13 December 2018

ITC on Insurance Premium paid for Car is Blocked u/s 17(5) of the CGST Act 2017 since the Principal ( Car ) is blocked u/s 17(5).

The CGST ( Amendment ) Act 2018 has also made it very clear that any expenses like Repairs and Maintaince, Insurance etc on Motor Vehicles shall not be allowed for ITC.

1 Like

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CA Nikhil Arora (Chartered Accountant) (91 Points)
Replied 14 December 2018

It is treated as blocked credit in the recent GST meeting held. All the expense relating to the mototr vehicle such as repair, insurance etc is not allowed as credit.

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 14 December 2018

yes, itc is blocked in case of car insurance premium or repair n maintenance.

Jeetu Kodwani (Consultant) (421 Points)
Replied 14 December 2018

ITC on repair s and maintenance of car is allowed only to those eligible assessee who are eligible to claim ITC on purchase of car

chandan l (15 Points)
Replied 18 May 2019

sir,

please help i confuse on vehicle insurance renewal amount paid on this can take Input

so one says not eligible eligible

waiting for reply

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 18 May 2019

No u cannot take itc unless you have yellow plate on your vehicle. I mean it's commercial.

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Sundeep Kandoi (Director) (76 Points)
Replied 05 June 2019

If any of the below is yes than you can claim ITC on the vehicle/service itself or insurance or the repairs and maintenance of the above vehicle.

1) Is the seating capacity more than 13?
2) Vehicle is bought for further-supply/resale?
3) Vehicle bought is being used for transportation of passengers?
4) Vehicle bought is being used for imparting training on driving of such motor vehicles?
5) Vehicle hired(or leased or rented) is used for the above purposes mentioned in 2-4 above?
6) are you manufacturer of those motor vehicles?

Experts can please confirm the above.

1 Like

Hemant Tibrewalla (2 Points)
Replied 18 June 2019

Sir Other views here are contrary to your advise,Could you please clarify?

Shagufta Naz (Proprietor) (27 Points)
Replied 07 December 2019

1] under which table we can reverse claimed ITC on motor-vehicle insurance ??

2} can we take input on vehicle insurance if its reflecting in 2A , what can we do under this situation ??

Assurance Hub (13 Points)
Replied 11 May 2023

Input Tax Credit on car insurance premium paid is generally not allowed under the Goods and Services Tax (GST) regime. Car insurance is categorized as a general insurance service, and according to GST laws, ITC is not available for general insurance services, except for certain cases related to commercial vehicles used for business purposes.

It's always advisable to consult with a tax professional or refer to the latest tax regulations in your jurisdiction to determine the specific rules and eligibility for claiming Input Tax Credit on car insurance premium paid. They will be able to provide you with accurate and up-to-date information regarding any potential tax benefits or deductions related to car insurance premiums.