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Motor vehicle GST

niloy sanyal (account manager) (777 Points)

23 September 2020

We are a manufacturing Pvt. Ltd. company , recently we have purchased a Maruti A-Star CAR of our Company Name and we are use this car of our company different type of work purpose. Example --- for our staff going to market for materials purchase purpose, staff going factory to heat treatment plant for Heat Treatment purpose , Some Finished Material deliver to party address. Can we claim full ITC for above Motor car......

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3 Replies

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 23 September 2020

ITC cannot be claimed if it has a seating capacity of less than 13 persons.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 23 September 2020

Section 17(5)_ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver).
except (Available only in this case)
1. You are in the business of supplying cars,
2. You are providing transportation of Passengers services
3. You are running a driving school.

So, in your case ITC is not available as it's blocked u/s 17(5) of CGST Act, 2017

Shivam RC (Student) (23683 Points)
Replied 23 September 2020

ITC on Motor Vehicles is specifically Blocked under Section 17(5) of the CGST Act 2017.

So you cannot claim ITC on Maruti A Star Car even if it is being used in the the course or furtherance of business. Section 17(5) overrides the Provision of Section 16(1) of the CGST Act 2017.

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