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Input claim

Ishan Singhal (19 Points)

09 August 2018

No gst input credit on insurance of vehicles, repairs & maintenance of vehicles.is true?

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8 Replies

Vivek soni (Student) (122 Points)
Replied 09 August 2018

Yes it is covered under section 17(5)

Asiya Begum (Chartered Accountant) (687 Points)
Replied 09 August 2018

As per the current provisions of GST it is nowhere mentioned in the exclusions. So, it will be available. However, proposed amendments to GST Act says that ITC on insurance, vehicle repairs etc., for vehicles having less than13 seating capacity will be restricted.

Vivek soni (Student) (122 Points)
Replied 09 August 2018

In section 17(5) it is mentioned that services IN RELATION TO MOTOR VEHICLE which includes insurance, repair and maintainence

Asiya Begum (Chartered Accountant) (687 Points)
Replied 09 August 2018

The wordings of sec. 17(5) are reproduced here for your reference -

Notwithstanding anything contained in sub-section (1) of section 16 and subsection
(1) of section 18, input tax credit shall not be available in respect of the following,
namely:—
(a) motor vehicles and other conveyances.

So, from the above, an inference can be drawn that credit on the purchase of the motor vehicle is only restricted and not on the insurance etc.,

Vivek soni (Student) (122 Points)
Replied 09 August 2018

Sir it is nowhere mentioned that only purchase is included in it

Asiya Begum (Chartered Accountant) (687 Points)
Replied 09 August 2018

It is mentioned that the credit in respect of the motor vehicle. The credit on insurance etc., is not given in exclusions anywhere unlike in service tax.