ITC in case of motor vehicle including blocked credit

Divyanshu Sharma | Last updated: 17 April 2023

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Quick Summary

This article clarifies the rules around claiming Input Tax Credit (ITC) for motor vehicles. Generally, ITC is blocked for vehicles with a seating capacity of 13 or fewer, and for related services like insurance and repairs. However, exceptions apply if the vehicle is used for further supply of vehicles, passenger transport, or driving instruction. ITC is permitted for vehicles designed to carry more than 13 people or those used for transporting goods, including associated services.

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, ther

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FAQ :

ITC is blocked for motor vehicles with an approved seating capacity of 13 persons or fewer (including the driver). ITC is also blocked on related services like insurance, servicing, and repair.

Yes, ITC is available if the motor vehicle is used for making further taxable supplies of motor vehicles, for the taxable supply of passenger transportation, or for providing training on driving such cars.

ITC is allowed for motor vehicles with an approved seating capacity of more than 13 persons. This also includes ITC on related services like insurance, servicing, and repair.

Yes, ITC is allowed for motor vehicles used specifically for the transportation of goods. This also includes ITC on related services such as insurance, servicing, and repair.