GST on Insurance premiums

My query is that a registered service provider is having a GST number and he had purchased four wheeler vehicle for the business and he had paid insurance premium.
Now he wants GST paid on insurance premium to be refunded.

Is this possible ?
Replies (6)

As per CGST amendment act  2018 , amendment in  section 17(5) ,   entry 9 (ab )  Input tax credit  is not allowed  on  general  insurance  of  motor vehicles . 

please confirm with others also . 

No... The Tax not refundable & ITC also not available.
No itc available and therefore no refund also

No.

Case when ITC is not available under GST

Motor vehicles & conveyances

ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver).

Further, ITC is not available on vessels and aircraft.

For example, XYZ & Co. buys a car for their business. They cannot claim ITC on the same.

Exceptions to ITC on motor vehicles/vessels/aircrafts

ITC will be available when the vehicle is used for making taxable supplies by the following.

a) Supply of other vehicles or conveyances, vessels or aircrafts.

If you are in the business of supplying cars then ITC will be available.

For example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess calculations). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST. Since he is a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14).

b) Transportation of passengers

If you are providing transportation of passengers then ITC will be allowed on the vehicle purchased.

For example, Happy Tours purchased a bus for inter-city transport of passengers. ITC is available.

c) Imparting training on driving, flying, navigating such vehicle or conveyances or vessels or aircrafts, respectively.

A driving school purchases a car to give training to students. The school can claim ITC on the GST paid on the car.

d) Transportation of goods

ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another. However, this is concerning other transporters and not goods and transport agencies

 

CAn GST be claimed on the repair and maintence bill of this vehicle bought in firms' name ?

thanks for the information

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