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Input Tax Credit

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Fanny7

Own

27 Points Posted on 26 July 2020

Hi,

I am buying steel racks for my business warehouse so can i claim itc for that ?

Also i want to buy scooty which will be also used for my business purpose along with my personal work so will i be able to claim its itc too ?

Replies (7)

Quick Summary

This discussion clarifies the eligibility for claiming Input Tax Credit (ITC) on business purchases under GST. While ITC can generally be claimed on assets like steel racks used for business purposes, it is blocked for certain items, including motor vehicles like scooties, as per Section 17(5) of the CGST Act. The experts highlight that even if an asset is used partly for personal needs, ITC may still be claimable if primarily used for business, but motor vehicles are a specific exclusion.

Ramesh Bonda

28 Points Posted on 26 July 2020

Sir, what is the purpose of use steel racks? Further scooty u/s 17(5) negative list goods not claimed itc

Vijayprakash P

776 Points Posted on 26 July 2020

ITC of the taxes paid is blocked in following cases. 1.Goods and services or both used for personal consumption. 2.Services of General Insurance, servicing, Repair and maintenance as they relate to motor vehicles.

Shivam RC

Student

7666 Points Posted on 26 July 2020

For Steel Racks you can claim ITC since it is being used in the course of or furtherance of business ( SECTION 16(1) of the CGST Act 2017 ).

As far as the Motor Vehicle ( Scooty ) is concerned, you cannot claim ITC as it is specifically BLOCKED under Section 17(5) clause (a) of the CGST Act 2017.

Regards,
Shivam RC.

Maryam Hasan Meem

Student

196 Points Posted on 27 July 2020

Yes, I agree with SHIVAM RC as mentioned above.

Fanny7

Own

27 Points Posted on 28 July 2020

Means if i purchase racks, computer, laptop, hard disk and have sole proprietor firm gst no. then i can claim itc ? Offcourse these things will be used in my personal needs too so if i will claim itc on them then will i do anything wrong because these things will be also use in my business location so i am confused.

Further pl. see this article here it says i can claim itc on scooty - https://www.caclubindia.com/experts/our-own-goods-vehicle-used-for-business-purpose-2743169.asp

Fanny7

Own

27 Points Posted on 31 July 2020

Please experts respond because i found one article in which experts confirmed that itc can claim on scooty too if purchasing for the business purpose like taking goods to business location or using scooty for the business purpose to run inbetween warehouse to warehouse sooffcourse i will also use the newly scooty for fulfilling this types of business purposes. So can i claim itc or not ?

https://www.caclubindia.com/experts/our-own-goods-vehicle-used-for-business-purpose-2743169.asp