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CAN CLAIM INPUT? REPAIR AND MAINTANCE EXP

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pratik sanjay mohadikar

accountant

65 Points Posted on 16 September 2020

can we use gst input of vehicle servicing expenses. client proving goods transportation services.

Replies (6)

Quick Summary

This discussion clarifies whether GST input tax credit (ITC) can be claimed on vehicle repair and maintenance expenses. If a vehicle is used for the business of transporting goods, then ITC on servicing, repair, and general insurance costs is generally claimable. This was confirmed by an amendment to Section 17(5) of the CGST Act 2017.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 16 September 2020

Yes, you can claim ITC of vehicle service bill, if vehicle is used by you for your business of Transportation of Goods..

Rashmi Dalmia

60 Points Posted on 16 September 2020

No ITC is allowed on services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in (1).

Exceptions to ITC on insurance, repair or maintenance

Same as expections mentioned for motor vehicles/vessels/aircrafts
where received by a taxable person engaged—(I) In the manufacture of such motor vehicles, vessels or aircraft; or
(II) In the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him

Shivam RC

Student

7666 Points Posted on 17 September 2020

If the Vehicle is being used in Transportation of Goods, then Yes ITC can be claimed on Repair & Maintenance Expenses, General Insurance etc. This was clarified by amending Section 17(5) of the CGST Act 2017 vide the CGST Amendment Act 2018 w.e.f 01/02/2019.