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

ITC / Input 2924 views 7 replies

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???

Replies (7)
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)
My question is ....can we claim gst input regarding the purchase of bike???

- No. ITC not available.

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 

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
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

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

Thank you for the replies


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