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ITC on Two wheeler

Manoj Patel (100 Points)

27 August 2020

agar me apane business purpush ke liye two wheeler bike purchase karta hu to is par mujhe itc credit milega ya nahi

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 August 2020

No, ITC of Bike is not available..it's blocked u/s 17(5).
ITC available only if you have a business of selling bike, or providing services of bike drive training...

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Manoj Patel (100 Points)
Replied 27 August 2020

But i use in my business like material dispatch

Vijayprakash P (1313 Points)
Replied 27 August 2020

If motor vehicle is used for business purpose, u/s 2(59) of GST Act it is furtherance of business. Hence, ITC can be claimed. ITC would be available only to the extend of the amount of tax paid on inward supplies being used for business purpose.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 August 2020

Credit is available if Commercial vehicle used for transportation of goods in business.
But on bike, We cannot take credit because as per Motor Vehicle Act, 1988 bike is for transportation of passenger. (it's not considered as Goods carriage Vehicle) And ITC on motor vehicle used for transportation of passenger upto seating capacity of 13 person including driver is blocked sec 17(5) of CGST Act, 2017. Hence in your case credit is not eligible.

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