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ITC on insurance

SRINIVAS (Accoutant) (33 Points)

18 November 2020

we have taken insurance for company vehicles can we claim ITC on this

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5 Replies

Shivam RC (Student) (23683 Points)
Replied 18 November 2020

Did your company claimed ITC on Motor Vehicles ???

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SRINIVAS (Accoutant) (33 Points)
Replied 18 November 2020

Input eligible or not

JATINDER KUMAR (Accountant) (3662 Points)
Replied 18 November 2020

You can not claim ITC

ayusmita (Tax consultant) (5885 Points)
Replied 18 November 2020

If it is of general insurance and motor vehicle is used for futher supply of vehicles or for training purposes or transportation of passanger
or transportation of goods then itc is available
other than this purposes itc on motor vehicle is not allowed

Shivam RC (Student) (23683 Points)
Replied 18 November 2020

As per clause (aa) of sub Section (5) of Section 17 of the CGST Act 2017, ITC on General Insurance, Repairs and Maintenance, Servicing etc will not be allowed if the credit on Motor Vehicle was Blocked under Section 17(5) clause (a). So if you haven't claimed ITC on purchase of Motor Vehicle, then you will not be allowed to claim ITC on Car Insurance.

However if ITC was claimed on Motor Vehicles ( used for transportation of Goods ), then the ITC on services of General Insurance, Repairs & Maintenance can be claimed.