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ITC on Vehicle Insurance

13 December 2018

we are Proprietary company, buy insurance policy for owner vehicle.

my question is that can we take GST credit for that Policy.

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3 Replies

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 ----> Yes can claim ITC input credit on both car and Insurance premium. However if you are in some other business, where the car is used for furtherance of business ----> you cannot claim ITC on Car only, but ITC on insurance & other accessories is not blocked. Therefore there is no restriction on ITC towrds Insurance paid .so you can claim ITC on insurance premium..