IS ITC AVAILABLE ON PURCHASE OF COMMERICAL CAR

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This query is : Resolved

Quick Summary

This discussion clarifies whether Input Tax Credit (ITC) can be claimed on the purchase of a commercial car for business use in India. Generally, ITC on cars is restricted under Section 17(5) of the GST Act. However, exceptions exist if the vehicle is specifically used for taxi services, motor driving school purposes, or for the business of selling cars.

Pradeep Sharma

Pradeep Sharma (Querist)

19 May 2025 Dear Expert,

My company want to purchase a commercial car (Hyundai Aura CNG) for business use like transport of material or business tours.
Can we claim the ITC of this car.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

29 May 2025 cannot be claimed under section 17(5) even if it is for business use. ITC on car is permitted only for specified uses such as taxi service, motor driving school or for car selling business.

Pradeep Sharma

Pradeep Sharma (Querist)

10 June 2025 thank you sir for support

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