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Is input available on vehicle maintenance for manufacturing company?

advaith reddy (2 Points)

17 July 2019

is manufacturing company can avail input on vehicle maintenance.

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4 Replies

Kiran Kale (In practice) (88 Points)
Replied 17 July 2019

ITC is not blocked on any motor vehicles for transportation of goods. Also, any expenses in the form of repairs, maintenance and general insurance of motor vehicles credit of which is not blocked under section 17 will be allowable as input tax credit under GST.

In your case, Input tax credit will be allowed of Vehicle Maintenance.

Nikhil Kapoor (7 Points)
Replied 17 July 2019

in my opinion from 1st 2019 feb u cannot avail itc on vehicle repair and maintainance

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Kiran Kale (In practice) (88 Points)
Replied 17 July 2019

I take back conclusion as was not aware about the amendment. Thanks Nikhil.

Now they have specifically added following text in blocked credit

Section 17(5)[ab] services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause [a] or clause [aa]:

Which means now you can not take such credit.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 18 July 2019

Yes credit is available on repair, insurance, maintenance if :-
The vehicle is being used for transportation of Goods.
In business of sale purchase of vehicle.
The vehicle for transportation of passenger having approved seating capacity .,more then 13 person.

Hence if the vehicle is used in above any of condition , can claim ITC on its repair

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