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GST input on Vehicle for business purpose

Sree Vidya (student) (128 Points)

11 October 2018

Hi Sir, My client is into manpower supply services. he purchased a vehicle to transport employees to their respective client locations. whether client can claim GST input on vehicle purchased. Please suggest

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5 Replies

CA Sunil Kumar (Chartered Accountant) (4514 Points)
Replied 11 October 2018

As per section 17 (5) input tax credit shall not be available in respect of the motor vehicles except in some exceptional cases. Your case is not covered in exception so not eligible for ITC on motor vehicle.

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Sree Vidya (student) (128 Points)
Replied 11 October 2018

thank you very much sir, as my client is a service provider of manpower. can we interpret supply of manpower is equivalent to as transport of goods

sunny chauhan (58 Points)
Replied 11 October 2018

No, as he is not engaged in the bussines of transportation of person's

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Sree Vidya (student) (128 Points)
Replied 11 October 2018

sir, as per amended sec 17(5), act is talking about restriction of ITC on motor vehicle with seating capacity of not more than 13 seats (including driver). and is completely silent on more than seating capacity of motor vehicle with less than 13 seats.
in this regard, shall we take input on motor vehicle with less than 13 seats