INPUT TAX ON COMMERCIAL CAR

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A business in the tour and travel sector purchased a vehicle solely for commercial use and is seeking clarification on claiming GST input tax credit (ITC). The core question is whether ITC on this capital good can be claimed in a single instance or spread over a 5-year period as per GST law. Advice suggests ITC can be claimed at once, but this contradicts the 5-year rule for capital goods, prompting a need to verify current provisions.

sachin Alwadhi

sachin Alwadhi (Querist)
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20 July 2022 Hi

My client in tour and travel operating business.Currently purchased a vehicle in the name of firm and same is exclusive using for business purpose and now wanna to take input tax credit of Gst .Now my question is input tax on capital goods available in 5 year time period or can take in single time?Kindly guide the calculation of input credit of vehicle (capital goods) in 5 year time period