No gst input credit on insurance of vehicles, repairs & maintenance of vehicles.is true?
Menu
Input claim
Replies (8)
Yes it is covered under section 17(5)
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.
In section 17(5) it is mentioned that services IN RELATION TO MOTOR VEHICLE which includes insurance, repair and maintainence
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.,
Sir it is nowhere mentioned that only purchase is included in it
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.
The word" in respect of" includes insurance nd all sir
itc on insurance and repair maintenance of vehicle fully allowed
Recent Topic
- Calculation of IT
- CA FINAL FR IndAS 33 Doubt(Corrected)
- Clarification Needed: Reporting Accrued vs Paid FD
- TDS on prize given to participants in Livestock sh
- TDS related matter - 194 IA
- Research: How do CA firms handle GSTR-2B reconcili
- CA FINAL FR IndAS 33 Illustrtion 14
- Taxation on Sale of old Jewellery Received at Marr
- ITR-3 Filling issues
- PF withdrawal and tax liability
Related Topics
CAclubindia
