Input Tax Credit on purchase of car & car Expenses

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This query is : Resolved

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This discussion clarifies the eligibility for Input Tax Credit (ITC) on the purchase and ongoing expenses of a car used for official employee purposes. According to Section 17(5) of the GST Act, motor vehicles are generally considered a blocked credit. Therefore, ITC is not available for both the initial purchase of the car and its subsequent maintenance charges like servicing.

CA. Rahul Dwivedi

CA. Rahul Dwivedi (Querist)
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25 January 2020 Dear Sir,
We have purchased a car for official use of our employee.
1) I want to confirm can we avail ITC on purchase of such car. and
2) Maintenance charges like servicing paid for such vehicle.
As section 17(5) motor vehicle is covered under blocked credit .
Kindly assist with your expert advice
Thanks