Input Tax credit on vehicle maintenance etc

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This query is : Resolved

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This discussion clarifies the eligibility for Input Tax Credit (ITC) on company-owned vehicles. It confirms that ITC cannot be claimed on the purchase of a car, nor on associated maintenance costs like servicing and repairs, or insurance payments. These restrictions are due to specific provisions within the CGST Act, 2017, which prohibit ITC for such expenses.

Neha

Neha (Querist)
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03 April 2021 Dear Expert
A Car ( 5 seater) is purchased by a Private Limited Company. It is an asset in the Company Books. Used only by Companies Director. Can
1. ITC be availed on the purchase invoice of car
2. Can ITC be availed on the maintenance expenditure of the car ( Car servicing, repairs)
3. Can ITC be availed on insurance paid for the car.
Please provide guidance. If possible also mentioned relevant section or notification to look up in this regards.
Thank you for the help in advance.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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03 April 2021 ITC shall not be available on car purchased by a company under section 17(5) of the CGST Act, 2017.

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Neha

Neha (Querist)
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07 April 2021 Thank you Sir for the guidance. Please also clarify Can ITC be availed on the
1. Maintenance expenditure of the car ( Car servicing, repairs)
2. Can ITC be availed on insurance paid for the car.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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07 April 2021 In view of specific restriction u/s 17(5) the answers to all you queries is no. No ITC whatsoever whether it is on insurance or anything else.

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