Divyanshu Sharma
1) Motor Vehicle used for transportation of Persons
(A) ITC is blocked for motor vehicles have approved seating capacity ≤ 13 persons (including the driver)
ITC is also blocked on certain services relating to motor vehicles like insurance, servicing and repair & maintenance.
BUT, there are some exceptions to point (A) i.e. if motor vehicle is used for:
(i) Making further taxable supply of motor vehicles.
(ii) Making taxable supply of transportation of passengers.
(iii) Making taxable supply of imparting training on driving such cars.
Then, ITC is available.
(B) ITC is allowed if motor vehicle have approved seating capacity of >13 person
In this case, ITC is also allowed on certain services relating to motor vehicles like insurance, servicing and repair & maintenance.
2) Motor Vehicle is used for transportation of goods
- ITC is allowed for Motor Vehicle used for transportation of goods.
- ITC on certain services relating to motor vehicles like insurance, servicing, and repair & maintenance are also allowed.
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