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Can I take IGST credit on truck purchase

manish jaiswal (1985) (35 Points)

14 September 2017

sir I am a registered person under gst. and supplier of stone grit. now I am purchasing a truck to deliver the grit on purchaser site. so now weather I can take credit of igst.

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33 Replies

Faraz (Student) (236 Points)
Replied 14 September 2017

Yes you can take input credit provided it is excusively used for transportation of goods. Kindly refer section 17(5)(a)(ii).

1 Like

manish jaiswal (1985) (35 Points)
Replied 14 September 2017

thanx sir

manish jaiswal (1985) (35 Points)
Replied 14 September 2017

but sir my main business is sale of grit. and for delivery of that grit I will use this truck then I can take credit of igst

Faraz (Student) (236 Points)
Replied 14 September 2017

Originally posted by : manish jaiswal
	but sir my main business is sale of grit. and for delivery of that grit I will use this truck then I can take credit of igst

Yes, you can. Kindly refer the stated section in CGST Act for proof.

RAJA P M ("Do the Right Thing...!!!") (127076 Points)
Replied 14 September 2017

@ Manish.,
You can't avail ITC from the purchase of truck.
Vehicle's ITC used by Transport business person/Firms only take. Otherwise no need....

1 Like

Boreddy Manohar (31 Points)
Replied 14 September 2017

yes u r correct sir

1 Like

Faraz (Student) (236 Points)
Replied 14 September 2017

Originally posted by : RAJA P M

@ Manish., You can't avail ITC from the purchase of truck.Vehicle's ITC used by Transport business person/Firms only take. Otherwise no need....

ITC can be claimed. Kindly read 17(5)(a)(ii).

17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-
section (1) of section 18, input tax credit shall not be available in respect of the following,
namely:—
(a) motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
or conveyances;
(ii) for transportation of goods;

RAJA P M ("Do the Right Thing...!!!") (127076 Points)
Replied 14 September 2017

Originally posted by : Faraz
	Originally posted by : RAJA P M @ Manish., You can't avail ITC from the purchase of truck.Vehicle's ITC used by Transport business person/Firms only take. Otherwise no need.... Kindly read 17(5)(a)(ii). 17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:— (a) motor vehicles and other conveyances except when they are used–– (i) for making the following taxable supplies, namely:— (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods;

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Faraz (Student) (236 Points)
Replied 14 September 2017

Mr. Raja kindly go through section 17(5)(a)(ii) carefully. I am reproducing again:

17(5) Notwithstanding anything contained in sub-section 1 of section 16 and sub-section 1 of section 18, input tax credit shall not be available in respect of
(a) motor vehicles and other conveyances except when they are used (ii) for transportation of goods;

RAJA P M ("Do the Right Thing...!!!") (127076 Points)
Replied 14 September 2017

Mr. Faraz.,
Don't be confused. You can read again carefully.... Then You ll do advice for me...!

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 14 September 2017

ITC can't available for Vehicle purchase. The ITC available is related business only...

Faraz (Student) (236 Points)
Replied 14 September 2017

This is not CENVAT era. In CENVAT era, you could not avail. Under GST, words are different which enables anybody to avail input on purchase of vehicles if it is used for transportation of goods.

It's never too late to learn

1 Like

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 14 September 2017

Originally posted by : Faraz
	This is not CENVAT era. In CENVAT era, you could not avail. Under GST, words are different which enables anybody to avail input on purchase of vehicles if it is used for transportation of goods.It's never too late to learn

ITS VERY TOO MUCH....

YOU HAVE POINTS THEN POST HERE. IF NOT, ASK YOUR SENIORS OR GO TO READ THE LAW CAREFULLY. ITS USEFULL FOR YOU AND YOURS..

BUT, DON'T BE USE/WRITE RISBILITY WORDS...