A motor car has been purchased in June 2023 and the vendor collected cess on the same. The cess amount reflects in ITC ledger under 'Cess'.
Can we çlaim refund of the same or set it off against outward liability of tax other than cess? We will never have any sales on which we will require to collect cess. So don't know how to utilize the cess in ITC or what to do with it.
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Cess paid on purchase of car.
Replies (8)
Cess paid on purchase of car
Yes. And we are a corporate service industry providing service in brokerage.
ITC on motor car is blocked u/ s 17 (5) of CGST act.
So, Cess also not available to claim as ITC.
Reverse the ITC....
So, Cess also not available to claim as ITC.
Reverse the ITC....
ITC on motor vehicle is specifically blocked u/s 17(5) as said by RAja sir and no claim of any ITC including cess will be available..Also no refund can be claimed for such ITC.
The cess amount along with other ITC on motor car will be capitalized with the car. ITC will be reversed under 17(5).
Only in very specific cases ITC can be taken on motor car otherwise generally it has to be reversed as mentioned before.
Only in very specific cases ITC can be taken on motor car otherwise generally it has to be reversed as mentioned before.
Thanks all for your opinion.
Cess paid on purchase of car
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