Can insurance premium

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This query is : Resolved

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This discussion clarifies whether GST charged on car insurance premiums is claimable as Input Tax Credit (ITC). Generally, ITC on insurance for personal vehicles, even if owned by a proprietorship and used for business visits, is not allowed. This is because ITC on motor vehicles for transporting persons with a seating capacity under 13 is restricted, except for specific taxable supplies outlined in the Act. Consequently, GST on repairs and maintenance for such vehicles is also typically not claimable.

ARUN GUPTA

ARUN GUPTA (Querist)
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16 September 2021 Can we claim gst charged on car insurance premium ? We are suppliers of Iron and steel goods and fabrics. Car is in our proprietorhip firms name.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 September 2021 Car is used for personal transportation. ITC can't be claimed on it's insurance premium.

ARUN GUPTA

ARUN GUPTA (Querist)
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16 September 2021 We use car for visit to party and for Collection from party.

ARUN GUPTA

ARUN GUPTA (Querist)
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16 September 2021 We claim depreciation on car in Income tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 September 2021 ITC not allowed on cars.

Udaya Chandran

Udaya Chandran (Expert)
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17 September 2021 ITC on motor vehicles used for transportation of persons having seating capacity less than 13 is not available.

ARUN GUPTA

ARUN GUPTA (Querist)
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17 September 2021 Gst on repairs of car also not available for inputs?

Udaya Chandran

Udaya Chandran (Expert)
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17 September 2021 Yes, ITC on repairs & maintenance, insurance related to such motor vehicles (in your case) are not allowed other than for those taxable supplies as mentioned in the Act.

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