ITC on Old lorry purchased

Save Share

This query is : Resolved

Quick Summary

A lorry owner sought guidance on claiming Input Tax Credit (ITC) on the purchase of three old lorries, where the seller was charging GST. Initially, it was advised that ITC could not be claimed due to exempt output services. However, upon clarifying that the owner would register as a Goods Transport Agency (GTA) and pay GST on forward charges, it was confirmed that ITC would then be claimable.

Rakesh Sharma

Rakesh Sharma (Querist)
Follow

07 July 2020 Sir, I have 3 Lorries and hire them for goods transportation. Presently I am intending to purchase
3 Old lorries and seller is imposing GST about Rs. 7 Lacs on it.

Sir, I want to avail this ITC, whether I can avail or not, if there is any condition to avail this
ITC, please guide me.

I request to all the experts to guide me.

Rakesh Sharma

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 July 2020 You can't avail ITC as your output service is exempt.

Rakesh Sharma

Rakesh Sharma (Querist)
Follow

08 July 2020 Sir, if I take GTA registration and ready to pay GST as forward charges i.e. 12%. What will
be the situation?

Please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 July 2020 In such a case ITC can be claimed.

Message likes : 1 times

Rakesh Sharma

Rakesh Sharma (Querist)
Follow

09 July 2020 Thanks a Lot Sir, its mean I can claim ITC on old lorry.
Sir, you are brilliant and super intelligent. I salute you Sir.
Again Thank u so much my respected Sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

09 July 2020 Welcome....................

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!