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Input on vehicle and insurance

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NICSON JOHN

362 Points Posted on 18 October 2021

i am dealing with exempted supply .recently i bought a vehicle for my business for that i have paid inputs.can i take it as my input??also input paid on insurance for vehicle?? pls give me a reply..

Replies (4)

Quick Summary

This discussion explores whether Input Tax Credit (ITC) can be claimed on vehicles and their insurance when dealing with exempted supplies. Based on Section 17(2) of the CGST Act 2017, ITC is generally not available for businesses dealing in exempt supplies. Furthermore, even for businesses not dealing in exempt supplies, ITC on motor vehicles and insurance is typically restricted unless directly related to the core business, such as automobile sales.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 18 October 2021

Yes ITC can be claimed

prasad Nilugal

GST Practitioner & Accounts

9000 Points Posted on 18 October 2021

In my opinion ,as per section 17(2) of the CGST act 2017 , you can not take input tax credit in both the cases , because you are dealing with exempt supply . please confirm with others also.

Udaykumar

Accountant

40 Points Posted on 18 October 2021

Dear Sir,

If you are dealing with same business then only. like Apart from the business of automobiles no one can claim their ITC OF personal expenses or purchases related to automobiles. So you cant claim ITC on motor vehicle insurance.