ITC Refund on Vehicles

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This discussion explores whether businesses providing rental services, such as vanity vans for the film industry, can claim a refund for Input Tax Credit (ITC) on purchased vehicles. The advice given suggests that if GST is paid on rental income and there's an excess ITC due to an inverted duty structure (where input GST is higher than output GST), a refund may be possible. The question is specifically raised regarding the refundability of ITC on fixed assets like these vans.

Devendra

Devendra (Querist)
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09 September 2021 Dear Sir,

My business is provide vanity van to film industry on rental basis. I Purchase 4 new Vanity Van which ITC reflected in my GST Credit ledger. Can I apply for refund of this ITC.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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10 September 2021 Are you not paying GST on rental income?
If yes, and if you have excess ITC due to inverted duty structure (i.e. rate of GST on inputs more than that on outputs), then you may apply for refund.

Devendra

Devendra (Querist)
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11 September 2021 Thanks for ur reply, but can gst refund of Fixed Assets ITC are allow

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