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Can we take gst credit on maintenance bill of car

Jigar (employee) (38 Points)

20 May 2018

We have company registerd car used by director. The car service and tyre change invoice given by dealer has our company GST number printed in it. Can we take GST credit? Also, can we take insurance premium paid on this car GST credit?

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7 Replies

Rishi (NONE) (163 Points)
Replied 20 May 2018

No, Credit is allowed On motor vehicles
See Section 17 Of CGST Act 2017

CA Sunil Kumar (Chartered Accountant) (4514 Points)
Replied 20 May 2018

You can... if it's furtherance of business.
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.Restriction on ITC benefit in respect of motor vehicle DOES NOT get extended to repairs, insurance etc. for motor vehicles and as such there is no bar in availability of ITC on these services.

1 Like

Jatin (Accountant) (3479 Points)
Replied 20 May 2018

Better if you not take ITC

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 20 May 2018

No not allowed

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 20 May 2018

No you cannot take ITC for the same

Ferdous (advocate tax consultants) (80 Points)
Replied 23 May 2018

it is better to take credit of insurance premium paid and on maintanance of car. However, as per law if ITC is paid for making or acquiring immovable property then no ITC is allowed. For car used for business ppurposes like you said is allowed.