input credit of motor cycle

ITC / Input 601 views 2 replies
under gst regime,whether any provision able regarding availing input tax credit on motorcycle and A.C.
Replies (2)

Section 17(5) of the CGST Act, 2017

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 except when they are used––

(i) for making the following taxable supplies, namely:—

     (A) further supply of such vehicles or conveyances ; or

     (B) transportation of passengers; or

     (C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods;

There is nothing on air conditioner as far as my knowledge goes.

No ITC on motor cycle can be availed unless you are covered in the execptions in section 17(5). Regarding AC, there is only one condition that the same is used or intended to be ued in the course of or in furtherance of business. If you can demonstrate so to the Revenue, then you can avail ITC. If you fail to demonstrate, it will amount to wrong availment of credit which may lead to reversal of credit followed by interest and penalty.


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