gst ITC On car

ITC / Input 195 views 5 replies
my client individual or firm purchase car for official use, bill raised at firm name along with gst no.

can I claim input credit on car?

explain sir
Replies (5)
No... ITC not available except it's related business activities.
As per section 17(5) of CGST Act, input tax credit will not be available in respect of motor vehicles and other conveyances, except when

such motor vehicles or other conveyances are supplied further, or

used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or

are used for transportation of goods.

Hence, if your firm /individual does a business that falls under any of the categories mentioned above, it can claim the input tax credit. 
No input can be claimed.Exception : If the business is transport business or driving school then ITC can be claimed
ITC will be available when the vehicle is used for the following.

Transportation of goods
Transportation of Goods/Passenger
Supply of other vehicles or conveyances

Hence you are using it for tranporting of goods , ITC is available to You 
ITC cannot be claimed on Motor Vehicle since it is specifically Blocked u/s 17(5) of CGST Act 2017.
There are exception also as mentioned by Rohit Sir.


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