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Input Claim on Capital Goods

AASHISH KUMAR JAIN (EXECUTIVE ACCOUNTS) (73 Points)

20 September 2020

Respected Sir,
Purchase a Four wheeler in Firm name can I take full input claim for set off output taxes

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2 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 20 September 2020

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).
except..(in this case only available)
1.You are in the business of supplying cars,
2. You are providing transportation of Passengers services.
3. You are running a driving school.

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Shivam RC (Student) (23683 Points)
Replied 21 September 2020

No Sir you are not eligible to claim ITC on Motor Vehicles.

As per the Provision of Section 17(5) of the CGST Act 2017, ITC on Motor Vehicles having approved seating capacity of not more than 13 person ( which is including the driver of the car ) is specifically BLOCKED. However there are few exceptions like :

(a). The Car purchased is for further supply
(b). You are in the business of Passenger Transportation Services.
(c). You are running a Motor Vehicle driving school.

Regards.

1 Like