ITC available vehicle insurance Bolero zeep

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.

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.
Thanks Sir

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