Input tax credit on gst

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This query is : Resolved

MAHESHA R (Querist)

13 November 2017 Dear Experts

Kindly confirm the ITC for Insurance Premium and Vehicles in the name of company and vehicle maintenence on company vehicles

Dibin Divyakumar

Dibin Divyakumar (Expert)

13 November 2017 You can take credit of insurance premium & Repair on company vehicles provided the invoices have your co. GST No.

Message likes : 1 times

CA_Suhani

CA_Suhani (Expert)

13 November 2017 Section 17(5) restrcits availing credit in relation to motor vehicles and other conveyances except when they are used for
(1) making the following taxable supplies, namely;-
(A) further supply of such vehicles or conveyances
(B) transportation of passengers
(C) imparting training on driving, flying, navigating such vehicles or conveyances

(2) for transportation of goods

MAHESHA R

MAHESHA R (Querist)

13 November 2017 It means we are not eligible for Input Tax Credit On Company vehicle maintenence and Insurance.

Kindly confirm we are manufacturer of Automotive components and we are having vehicles for transport of our goods from Principle to Job worker and our vehicle used by our directors

Dibin Divyakumar

Dibin Divyakumar (Expert)

14 November 2017 i believe 17(5) restricts only the input on purchase of motor vehicles, not the subsequent repairs,

CA_Suhani

CA_Suhani (Expert)

14 November 2017 Dear Dibin,
There are two school of thought regarding this.
First: Any expenses "in relation to" motor vehicle disallowed- Then Insurance and repair disallowed
Second: Only credit on purchase is restricted. ITC on other expenses allowed.

I support the second view which is same as yours :)

CA_Suhani

CA_Suhani (Expert)

14 November 2017 Dear Mahesha,
Credit for motor vehicle purchased for director's use is not available.
However, credit for purchase of motor vehicles for transportation of goods is available. The subsequent insurance and repairs credit will also be available.

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