can i take input on car or other vehicles on behalf of business purposes ?
Replies (22)
Quick Summary
This discussion clarifies the rules around claiming Input Tax Credit (ITC) on motor vehicles for business purposes under the CGST Act 2017. Generally, ITC on cars and vehicles with up to 13 seats (including the driver) is blocked, even if used for business. However, exceptions exist for vehicles specifically used for transporting goods, like good carriage vehicles or three-wheelers used commercially. If your business involves selling vehicles, you can claim ITC as it's for resale. For buses with 13 or more passengers, ITC is generally available.
ITC on Motor Vehicles having approved seating capacity of upto 13 persons ( including driver) is specifically BLOCKED under Section 17(5) clause (a) of the CGST Act 2017.
So you cannot take ITC on Car even if used for business purpose...
If it's good carriage vehicle than u can take ITC, but if it's passenger vahicle and u r using it as goods carriage than u can't take, as that is not considered as Goods carriage vehicle