GST for car purchase

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29 Points Posted on 25 April 2022
Proprietor purchase car in your firm name. car supplier raised invoice with GST. 1)proprietor can entry in your books of accounts total invoice value or break up GST and also transfer this gst to Ineligible ITC. Also can i mention GSTR 3B table 4(d) ineligible itc 17(5) column mention or not.
2) Also can I claim Depreciation Taxable value basis or Toral value (Taxable value +gst ) basis.
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On 25 April 2022 at 21:09 Report
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Quick Summary
This discussion clarifies the accounting treatment for business car purchases where GST is charged. It explains that while GST credit on cars is generally ineligible under Section 17(5), the full invoice value, including GST, should be capitalised as a fixed asset. Depreciation can then be claimed on this total value, not just the taxable amount. The correct journal entries and GSTR-3B reporting for ineligible ITC are also outlined.

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Article Student
131 Points Posted on 26 April 2022
Transaction should be recorded With bifurcation, as GST credit on car purchase is ineligible u/s 17(5) and the same should shown under ineligible credit in respective 3B. You can claim Depreciation on total Value.. i.e Taxable value plus Tax amount.


Journal for Purchase.

Car asset a/c Dr.
GST a/c Dr
to bank a/c
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On 26 April 2022 at 01:23
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29 Points Posted on 26 April 2022

Thanks Sir. But Can I claim Depreciation Total Value (Taxable Value + GST) or only Taxable Value. Because Balance Sheet Fixed Asset Car ledger it shows Taxable Value Only. .Kindly clarify briefly

 

claim Depreciation on total Value

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=588876
claim Depreciation on total Value

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=588876
Depreciation on total Value

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=588876
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On 26 April 2022 at 11:42
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Chartered Accountant
5010 Points Posted on 26 April 2022

Since the GST credit is ineligible so do not clai the same. 

Capitalise the total value of thecar including GST to Car A/c and claim depreciation on it. 

Show total value under Car A/c. 

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On 26 April 2022 at 12:10
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29 Points Posted on 26 April 2022

Mam I have entry

Car A/c Dr

CGST Dr

SGST Dr

CESS Dr

Cr Vendor A/c

Next........

Ineligible ITC A/c Dr

To CGST A/c

To SGST A/c

To CESS A/c

So How can I calculate Depreciation . kindly Guide

 

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On 26 April 2022 at 13:09

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