After conversion of business nature use of tic on loading vehicle

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This query is : Resolved

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A business that initially traded food products and purchased a loading vehicle has ceased trading due to low sales. They are now renting out the vehicle on a monthly basis and issuing GST invoices. The query asks if they can change their business nature to transportation under their existing GST number and claim ITC on the vehicle. The response confirms that changing the business nature is possible and that ITC on the goods vehicle is eligible if used for further supply, such as renting it out or transporting taxable goods.

Mahendra Patel

Mahendra Patel (Querist)

03 December 2021 Dear Sir
Last year in apr-2020 we started a business of trading of food products (supply namkeen) and for the same, we registered under GST purchase material from direct factory and sold in small markets.
after 2-3 months we purchased a loading vehicle for the supply of goods.

and 2 months before we stopped this work due to sales were too low and monthly expenses is high.

last attached loading vehicle in another company for a monthly basis issued GST invoice to the company.

so please guide us can we convert my business nature from food to transportation on existing GST no. (for transport bills we use only vehicle-related ITC).

kindly guide us.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

03 December 2021 ONE MORE SUPPLY CAN BE ADDED UNDER SAME GSTIN.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 December 2021 Yes, you can convert the business in the existing gstin.

Mahendra Patel

Mahendra Patel (Querist)

23 December 2021 AND ALSO TAKE ITC OF VEHICLE WHICH AVAILABLE ON CREDIT REGISTER ????

PLS CONFIRM

CA Akshay Hiregange

CA Akshay Hiregange (Expert)

28 December 2021 Where goods vehicle used for further supply, i.e. supply of taxable goods or services then yes eligible. In your case renting of vehicle or use to transport taxable goods - eligible ITC.

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