ITC allowable or not

This discussion clarifies the eligibility of Input Tax Credit (ITC) for repair and insurance expenses on a Maruti car owned by a firm. Under Section 17(5) of the CGST Act 2017, ITC on motor vehicle repairs and maintenance is generally blocked. As ITC was not claimed during the car's purchase due to this restriction, it cannot be claimed on subsequent repair, maintenance, or insurance costs, even if the vehicle is used for business purposes.