14 December 2017
Sir(s), We are in textile sector business, now we propose to purchase a car for our Managing Director in the name of our Company. Kindly clarify that can we claim ITC on the GST charged on the car invoice? . If we claim itc mistakenly then what will be the consequences? shall we just reverse the credit taken by mistake?
14 December 2017
ITC is not available on motor car in this case. You can amend the details in returns and pay the duty along with interest equal to the ITC adjusted.
CAclubindia
