If any person buy a vehicle for transportation of passengers then he can take ITC of get paid on purchase of vehicle only if he is providing same category of output services I.e. transportation of passengers. The situation is different in case of transportation of goods. In this case the condition as to same category of output business is not required. Hence when a vehicle is used for transportation of goods ITC can be claimed

Originally posted by : Poltu Ghosh
	If any person buy a vehicle for transportation of passengers then he can take ITC of get paid on purchase of vehicle only if he is providing same category of output services I.e. transportation of passengers. The situation is different in case of transportation of goods. In this case the condition as to same category of output business is not required. Hence when a vehicle is used for transportation of goods ITC can be claimed

Absolutely perfect analysis of section 17(5)(a).

I'm being asked to read the law and consult seniors for something I'm speaking correctly.

I would like to request all the members to refrain from unnecessary remarks rather should argue for his contention. After all there may be convergent views and that is why this type of platform are being used to clarify the position. Even I am not an expert but still I give opinions based on my study and experience which may be wrong. This is a platform to exchange ideas, knowledge and experience. One may be right or may be wrong. This is what I think it personally.

Anyway what I tried is to bring what the law says. Different views cannot be ruled out but must be logical and commandable .

This confusion I have seen with many others too. Let me clarify the position.

There exist difference in condition for availing ITC in respect of vehicles used for transportation of passengers and transportation of goods.

Transportation of goods is kept under clause (ii) whereas transportation of passengers is under (B) of clause (i).

So only transportation of passengers is qualified by the condition of clause (i). Transportation of goods is thus outside the scope of clause (i).

Now just read only (a) (ii). Ignore (i). Like mentioned below-

input tax credit shall not be available in respect of the following, namely:—

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

      (i) ...... ignore now .....

     (ii) for transportation of goods.

This input tax credit is available in respect of motor vehicles used for transportation of goods. 

I hope this clarifies the position.

If we hire a truck which is used at the construction site for a particular period of time. whether input tax credit paid on hiring is availble or not as per section 17(5)(a) or not ?

@ Mr. Ankit Bhutani.,
In my view, ITC not available.
Above said replies from experts, it's says available....
So, You can wait once the confirmation from the experts view.....
GOOD LUCK.....

@ Raja Ji,

Section 17(5)(a) does not specify / talk about owned or hired Motor Vehicle and Conveyance , however, if we think practically, rent of any motor vehicle / cab / other conveyance would be availed if outward supplies directly relates to Inward supplies.

Anyways, Thanks

You are most welcome...

We can wait for the Exact clarification after face the problems on Audit or Any Circumstance.....

 

Anyway... GOOD LUCK...

SECTION 17(5)(A)(II) clearly makes a provision for allowing credit when motor vehicle (truck in your case) is used for transportation of goods. The burden of proof lies on you that credit is taken in terms of law ie you may have to lead the evidence that the truck has been used for transportation of goods.

How can a transporter can take igst credit please explain with egg.

Please, sir if I have taken ITC on purchase of new truk, and sell the sand with carting, what rate I charges in Sell Invoice @ 5% or differ rate on Sand @ 5% and 12 % on Carting, please explain

Originally posted by : kamlesh
	Please, sir if I have taken ITC on purchase of new truk, and sell the sand with carting, what rate I charges in Sell Invoice @ 5% or differ rate on Sand @ 5% and 12 % on Carting, please explain

 

dear all i am faceing same problem 

i am a transporter (R.K.TRANSPORT CO.) is there available gst input of purchase of new truck .

my confusion is i only transport tata salt which is exempted i never charge gst on transportation now is there available gst input of new truck purchase

Hello Sir,

I have purchased a car can i take ITC credit or not, and also tell me about that on conveyance bill, transportation Bill, Rail Ticket, Air Ticket will i take ITC credit on these bills.   

ACCOUNTING ENTRY IN GST TAX IN BOOKS