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ITC on payment of Insurance

Surya Phani (25 Points)

14 December 2022

Hellow Everyone,

Please tell me whether I can take ITC on insurance taken on motor vehicle used for business purpose?

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5 Replies

Satyapriy Chindak (118 Points)
Replied 14 December 2022

According to my study:
you can, for only :
1. labour insurance
2. commercial truck, tempo. if they are utilised for business only.

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pavan prabhas (206 Points)
Replied 14 December 2022

ITC can be claimed if it is for business purpose.

CA Rashmi B (Assistant Manager) (787 Points)
Replied 15 December 2022

ITC of motor vehicles used for transportation of goods can be availed. or if used for further supply of such motor vehicle. if it's for passenger vehicles though it's used for business ITC would be ineligible

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Sravan Yelagandula (Employee) (87 Points)
Replied 15 December 2022

Section 17(5) (ab) of CGST Act, denies input tax credit on the services of general insurance, servicing, repair and maintenance for the motor vehicles having seating capacity of less than thirteen. At the same time input tax credit is available on the services related to motor vehicle insurance, repair and maintenance of such vehicles if they are used for the purposes mentioned in the Points A, B & C as below

A. Further supply of such motor vehicles – the registered person is in the business of selling such motor vehicles B. Transportation of passengers – the registered person is in the business of transport services of passengers
C. Imparting training on driving such motor vehicles – the registered person is in the business of providing training on driving by using such motor vehicles