Can we claim gst input on purchase of bike for business purpose

ITC / Input 1984 views 7 replies
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Student CA Final
28 Points Joined August 2013

Hi,

A person is in wholesale medicine business and has purchased a bike so that the delivery boy ( employee ) can deliver the medicines to local medical stores using the bike.

My question is ....can we claim gst input regarding the purchase of bike???

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On 10 September 2019 at 13:44 Report
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Executive
16 Points Joined August 2011
As per Sec17(5) input tax credit shall not be available in respect of motor vehicle except when they are used for making taxable supply ( further supply of such vehicles)
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On 10 September 2019 at 14:00
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"Do the Right Thing...!!!"
128116 Points Joined January 2015
My question is ....can we claim gst input regarding the purchase of bike???

- No. ITC not available.
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On 10 September 2019 at 14:20
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CA ( final )
16 Points Joined August 2015

No...you can't claim itc... If you would purchase a vehicle for transportation of goods / passengers..or imparting training ..then it was possible to claim ITC ... You have purchased the bike for delivering medicines .. You are not in transport business for transporting medicines or passengers.so according to section 17 (5)(a) you can not claim itc 

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On 10 September 2019 at 14:46
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CA ( final )
16 Points Joined August 2015
If your business is purchasing and selling bike then you can .. If you have purchased bike for imparting training then you can get ..otherwise not
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On 10 September 2019 at 14:52
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GST Practitioner
55062 Points Joined June 2017
No you cannot claim ITC As it's block U/s 17(5). Even though it's being used in delivering medicine , because as per the Defination of Motor Vehicle this vehicle not meant for the transportation of Goods. Hence cannot avail ITC
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On 11 September 2019 at 09:40
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Asst. Manager
216 Points Joined December 2014

1. Motor vehicles and other conveyances

The input tax credit on Motor vehicles and other conveyances are not allowed under GST if they are used for personal purpose. However, there is an exception to this condition. If the motor vehicle and other conveyances are used for making the following taxable supplies, the ITC is available on such goods.

  • A further supply of such vehicles or conveyances
  • Transportation of passengers
  • Imparting training on driving, flying, navigating such vehicles or conveyances
  • For the transportation of goods
Read more at https://gstindianews.info/input-tax-credit-gst/#ineligible
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On 11 September 2019 at 14:06
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Student CA Final
28 Points Joined August 2013

Thank you for the replies

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On 19 September 2019 at 12:42


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