ITC ON PURCHASE OF CAR UNDER GST

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This discussion clarifies whether a trader dealing in gold and silver ornaments can claim Input Tax Credit (ITC) on a car purchased for their business under GST. The consensus is that ITC on cars is generally not allowed as they are considered personal transport vehicles. This falls under the 'blocked credit' provisions of Section 17(5) of the GST Act, meaning such credits cannot be availed.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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08 January 2020 DEAR ALL,

CAN A TRADER OF GOLD/SILVER ORNAMENTS CLAIM ITC ON PURCHASE OF CAR FOR HIS BUSINESS PURPOSE UNDER GST?

THANKS & REGARDS
NIRMAL DAVE

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 January 2020 Car is a personal transport vehicle so ITC not allowed.

CA SANDESH MAHIPAL

CA SANDESH MAHIPAL (Expert)
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11 January 2020 purchase of car falls under blocked credit under section 17 subsection 5. a trader of gold cannot avail ITC for the same. hope your query has been resolved.

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