Gst credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 Section 17(5) of the Central Goods and Services Act, 2017 provides that input tax credit in respect of the following shall not be available-

(a) motor vehicles and other conveyances Section 17(5) of the Central Goods and Services Act, 2017 provides that input tax credit in respect of the following shall not be available-

(a) motor vehicles and other conveyances except when they are used-

(i) for making the following taxable supplies, namely-

(A) further supply of such vehicles or conveyances; or

(B) transportation of passengers; or

(C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods;

The while notifying the gst rates on GTA why did they say that on ITC is available for gta?Can't we claim any credit for GTA for the tax paid on reverse charge

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 June 2017 5% GST rate is fixed considering ITC on petrol and diesel which is outside the GST purview. Hence no ITC gor GTA. But ITC is available for any body who pays under reverse charge.