private limited company has purchased a new vehicle Mahindra THAR.
could we take GST ITC?
GST ITC ON VEHICLE "THAR"
Hitesh Patel (Manager Accounts) (37 Points)
17 May 2021
Hitesh Patel (Manager Accounts) (37 Points)
17 May 2021private limited company has purchased a new vehicle Mahindra THAR.
could we take GST ITC?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 17 May 2021
No ITC unless it is used for the following:
Further supply
Transportation of passengers
Imparting training on driving of such motor vehicle
Transportation of Goods
Goutam Hebbar
(Articled Assistant)
(53 Points)
Replied 17 May 2021
Section 17(5)
Notwithstanding anything contained in sub-section (1) of section 16 and
sub- section (1) of section 18, input tax credit shall not be available in respect of the
following, namely:—
(a)
[motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except when they are
used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
Unless you are into the business of Motor Vehicles or into transportation business you can't claim ITC.
Ravinder Singh
(Direct & Indirect Taxation professional)
(110 Points)
Replied 17 May 2021
It is Available but some conditions applicable...please read in para 9. In section 17 of the principal Act,––
attached amendment act 2018
THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
Provided that the input tax credit in respect of such services shall be available—
(i) where the motor vehicles, vessels or aircraft referred to in
clause (a) or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged—
(I) in the manufacture of such motor vehicles, vessels or
aircraft; or
(II) in the supply of general insurance services in respect of
such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery, leasing, renting or hiring of motor
vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except
when used for the purposes specified therein, life insurance and health
insurance:
Provided that the input tax credit in respect of such goods or services
or both shall be available where an inward supply of such goods or services
or both is used by a registered person for making an outward taxable
supply of the same category of goods or services or both or as an element
of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as
leave or home travel concession:
Provided that the input tax credit in respect of such goods or services
or both shall be available, where it is obligatory for an employer to provide
the same to its employees under any law for the time being in force.”
CA. Sourav Sarkar
(Chartered Accountant )
(24578 Points)
Replied 17 May 2021
CA Altamush Zafar
(GST Consultant)
(15907 Points)
Replied 17 May 2021
ITC cannot be claimed unless used for further supply of service of transportation of passenger or service of training or for further supply of vehicle
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