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CAR TYRE ITC

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Rahul Supan

accounts

25 Points Posted on 09 January 2024

Hi, I am cab service provider, and I recently bought 2nd hand tyres from a Car owner, But I am registered in gst Not the person who sold me tyre. How can I avail ITC on that purchase ?

Note - 1) Person who sold me tyres - Not Registered In Gst, Nor a proprietor/co..etc. just do cab service .

2) I am a proprietor who bought the tyres - Gst Registration, Have several cars and provide passanger services to Companies.

Is it possible to avail ITC?

Replies (5)

Quick Summary

A GST-registered cab service provider is asking about claiming Input Tax Credit (ITC) on second-hand tyres purchased from an unregistered individual. The general consensus is that ITC is not available as the transaction did not involve GST. There's a brief discussion on whether Reverse Charge Mechanism (RCM) might apply, but it's clarified that RCM is typically for specific notified goods and services, and not applicable in this scenario.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 09 January 2024

As per Your query,
The seller is unregistered person.
Then its not a GST Sale and Also no GST involved.
Then how is possible to avail ITC...???

So, No way for ITC (ITC not available).

Rahul Supan

accounts

25 Points Posted on 09 January 2024

But as per RCM if supplier is unregistered, receipient has to pay GST on purchase and that Gst ITC will be availed...right..?

Rahul Supan

accounts

25 Points Posted on 09 January 2024

Originally posted by : RAJA P M
	As per Your query,The seller is unregistered person.Then its not a GST Sale and Also no GST involved.Then how is possible to avail ITC...???So, No way for ITC (ITC not available).