Input tax credit on purchase of vehicle

20 March 2019
Hi sir,
We are doing trading business of mobiles and accessories. We want to purchase a vehicle,
So can we claim the GST input credit on purchase of vehicle for business.
If we rent to another company then can we claim the input tax credit or not???
Please suggest me....

CA Anita Bhadra (Expert)
20 March 2019
No ,
You can not claim ITC . You are not doing business of vehicle / renting vehicle .

As per Sec 17(5) of the Act - supplies on which Input Tax credit is not available are :-

1. Motor vehicles and other conveyances except when they are used

a) For making further supply of such vehicles or conveyances

b) Transportation of passengers

c) Imparting training on driving, flying, navigating such vehicles or conveyances

d) For transportation of goods.

zareena (Querist)
20 March 2019
Thank you for your suggestion..


Click to Talk 21 March 2019
ITC not available on Vehicles

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