GST ITC availing on motor car


This query is : Resolved 

Quick Summary
This discussion clarifies whether GST Input Tax Credit (ITC) can be claimed on a motor car purchased for business purposes, such as leasing it out. Generally, ITC is blocked for such vehicles, meaning you cannot directly claim it. However, you may be able to capitalise the ITC. If you are a registered dealer with a travel business, charging GST and issuing bills for monthly payments received for the car might allow you to avail ITC.

(Querist)
10 September 2025 Plan to buy car and give to driver like person or to a travel agency.

They wll give monthly 25k which will be credited to me.

Can I avail gst itc on this

10 September 2025 No. ITC blocked over such vehicle. You can capitalize itc.

Indigo (Querist)
11 September 2025 What if I charge gst and issue bill for that monthly 25k

11 September 2025 Yes, if you are registered dealer having Travel business.

19 September 2025 Good Luck...


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