urgent doubt

151 views 9 replies
I have run a small agency.i want to purchase four wheller vehicle for official purpose.if I purchase it.i claim the amount in gst or not.the purchase vehicle register in agency name. Plz give me a solution.any one sir
Replies (9)
As per section 17(5) of CGST Act, input tax credit will not be available in respect of motor vehicles and other conveyances, except when

such motor vehicles or other conveyances are supplied further, or

used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or

are used for transportation of goods.

Hence, if your firm does a business that falls under any of the categories mentioned above, it can claim the input tax credit.
ITC will be available when the vehicle is used for the following.

Transportation of goods
Transportation of Goods/Passenger
Supply of other vehicles or conveyances

Hence you are using it for tranporting of goods , ITC can be taken.
if claim or not sir.i have use the vehicle for transporting the goods .I have claim for my business gst number or not sir
Are you having transportation business?
Yes you can claim...
I am not trosportation business.i am oil agency but I purchase vehicle for transportation goods from one place to another place.if I claim or not

Hi,

As said by Mr. Vinod, if you are in business of transport of goods, you can claim the credit of GST paid on purchase of vehicle to use to provide the output service.

But please note that  input credit in the business transportation of goods is allowed only when you pay the GST @ 12% under forward charge.  

If you do not pay and receiver pay GST @ 5% under reverse charge, input credit on vehicle puchased would not be allowed to you.

Thanks

Not allowed to companies using the vehicle for transportation.
thank you sir for your reply


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