Simran Katyal (Chartered Accountant) (182 Points)
10 December 2017Hello,
Sec 17(5) restricts for availing ITC on purchase of motor vehicle.
Can ITC on repair & maintenance expenses of motor vehicle, used in business (not motor vehicle business) be availed ?
Santosh Yadav
(106 Points)
Replied 10 December 2017
sarvesh toshniwal
(Student Others)
(118 Points)
Replied 10 December 2017
Sumit Gupta
(3 Points)
Replied 11 December 2017
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 11 December 2017
JEEVIKA AND CO
(PROPRIETRIX)
(153 Points)
Replied 11 December 2017
YES... YOU CAN TAKE GST INPUT CREDIT FOR REPAIRS AND MAINTENANCE OF VEHICLES
Rakesh Sarswath
(Article Student-GST Specialization)
(190 Points)
Replied 11 December 2017
As per section 17(5) of CGST, restriction on availment of ITC is only in case of purchase of motor vehicle whereas there is no such restriction on repair and insurance taken on such motor vehicle.
So you will be eligible to take ITC on the same.
SANGHARSH PAWAR
(ACCOUNTS MANAGER)
(69 Points)
Replied 25 May 2018
Services in the nature of repairs, insurance etc. for motor vehicles are not hit by the blocked credit provisions of GST law and accordingly ITC for the same is available if these services are used in the course or furtherance of business.
Jaysingh
(Income Tax GST Assessment Accounting finance)
(39 Points)
Replied 15 June 2018
| Originally posted by : Simran Katyal | ||
 |
Hello, Sec 17(5) restricts for availing ITC on purchase of motor vehicle. Can ITC on repair & maintenance expenses of motor vehicle, used in business (not motor vehicle business) be availed ? |
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Sec 17(5)(a) are only for purchase of motor vehicle and in whole sec17(5) sub clause (a) to (h) there is no specifically mention about the ITC on repair and maintaince not allowed. The opening line of section 17 (5 ) mentions that “input credit shall not be available in respect of the following….”. The wordings “in respect of” cannot be construed as ” in relation to”. Whereas “in relation to” is larger in scope, “in respect of” is a restricted term and does not indicate that one is required to go beyond what is mentioned specifically in the section.
THEREFORE ITC IS ALLOWABLE IF IT IS USED FOR FURTHERANCE OF BUSINESS.
Jaysingh
(Income Tax GST Assessment Accounting finance)
(39 Points)
Replied 15 June 2018
Sec 17(5)(a) are only for purchase of motor vehicle and in whole sec17(5) sub clause (a) to (h) there is no specifically mention about the ITC on repair and maintaince not allowed. The opening line of section 17 (5 ) mentions that “input credit shall not be available in respect of the following….”. The wordings “in respect of” cannot be construed as ” in relation to”. Whereas “in relation to” is larger in scope, “in respect of” is a restricted term and does not indicate that one is required to go beyond what is mentioned specifically in the section.
THEREFORE ITC IS ALLOWABLE IF IT IS USED FOR FURTHERANCE OF BUSINESS.
Rammi_RP Rawat
(Accountant )
(386 Points)
Replied 15 June 2018
YES, U CAN.. itc on repair & maitence of motor vehicle if its Furtherance of business
nikhil jain
(regn)
(22 Points)
Replied 03 July 2018
yes we Can go for book Itc of Repair and Maintence of Moter vehicle Because There is No Restriction to avail the input of Expences in Relation With Motor Vehicle There is Only Restriction Regarding Avail ITC Purchase Motor Vehicle (other than GTA,transporter of passenger and Motor Driving School and Further supply of Such Motor Vehicle in Open Market).
Kartikey Jain
(Intern)
(2382 Points)
Replied 04 July 2018
There is lack of clarity on this matter as Sec 17(5) of CGST Act is specifically excluding just Motor vehicles. In the previous regime, ancillary expenses like repairs, motor insurance were ineligible for availing credit. However currently, most assessees are taking up ITC on motor insurance and repairs as of now. Hope, department comes up with a circular or notification at the earliest to clarify its stand on the issue.
CAclubindia
