Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

ITC available vehicle insurance Bolero zeep

363 views

Save Share

Join Us Follow Us Add as Source

Rajendra Patil

3 Points Posted on 16 December 2020

Can we avail GST Credit

vehicle insurance Bolero

Replies (2)

Quick Summary

This discussion clarifies the availability of GST Input Tax Credit (ITC) for vehicle insurance, specifically for a Bolero. Generally, ITC on motor vehicles for transporting up to 13 people is blocked under Section 17(5) of the CGST Act. However, ITC can be claimed if the vehicle is used for further taxable supplies, passenger transport, or driving training. If ITC is blocked for the vehicle itself, it's also blocked for repairs and insurance; conversely, if ITC is available for the vehicle due to exceptions, it extends to repairs and insurance.

Joseph John

25 Points Posted on 16 December 2020

As per Section 17(5) of CGST Act :

ITC on Motor vehicles for transportation of persons with seating capacity ≤ 13 persons (including the driver) is blocked. However if such motor vehicles are used for:

 making further taxable supply of such motor vehicles
 making taxable supply of transportation of passengers
 making taxable supply of imparting training
on driving such motor vehicles

Then ITC can be claimed.

If ITC is not available on a vehicle due to above reasons, then ITC on its repairs or insurance is also not available. But, if ITC is available on vehicle due to above exceptions, then ITC is also available on repairs and insurance.