GST credit on vehicle

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This query is : Resolved

Quick Summary

Generally, you cannot claim GST input tax credit on motor vehicles purchased for business use. However, there are exceptions. If the vehicle is used for further supply, transporting passengers, or for driving instruction, you might be eligible. Crucially, if the vehicle is specifically designed or used for transporting goods, such as a tempo, then you can claim the GST credit.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)

17 June 2021 If the vehicle is purchased for the purpose of business. can we claim the GST as credit while filing the GST return?
Vehicle is used for the purpose of line sale.

CA Puja Sharma

CA Puja Sharma (Expert)

17 June 2021 No, Input Tax credit is not allowed for motor vehicle purchased for business except in the case if the vehicle is used for :
- Further supply of such motor vehicles
- Transportation of passengers:
- Imparting training on driving on such vehicles:

CA Altamush Zafar

CA Altamush Zafar (Expert)

17 June 2021 Is vehicle used for transportation of goods? Is it built for transportation of goods? If yes then take itc otherwise it is not allowed.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)

17 June 2021 Yes. Transportation of goods to all the shops. So can we claim ?

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

17 June 2021 If the Vehicle is passenger vehicle i.e. Car then you are not eligible for ITC but if its Tempo sort of Vehicle used for transportation of Goods then it will be eligible

CA Altamush Zafar

CA Altamush Zafar (Expert)

17 June 2021 If the build of the vehicle is of passenger vehicle then no itc. If the build has been modified or it is a vehicle which is used generally for transportation then itc available

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)

17 June 2021 Its a tempo.. Purely a commercial vehicle .

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

17 June 2021 Yes if its Tempo you can claim ITC

CA Altamush Zafar

CA Altamush Zafar (Expert)

17 June 2021 Claim itc on it......

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