141 Points
Joined April 2023
Yes, under certain circumstances, Input Tax Credit (ITC) can be claimed on the purchase of a vehicle registered under commercial registration. However, it is important to note that the eligibility for claiming ITC on a vehicle purchase depends on the purpose for which the vehicle is being used.
According to the Goods and Services Tax (GST) laws in India, ITC can be claimed for goods or services used for business purposes, including the purchase of a vehicle. However, there are specific conditions that need to be met:
-
Business Use: The vehicle must be used for business purposes such as transportation of goods, providing taxable services, or any other business-related activities.
-
Registered under Commercial Registration: The vehicle should be registered under a commercial registration, indicating its intended use for business activities.
-
ITC Restrictions: ITC cannot be claimed for vehicles that are used for personal purposes or for activities that are specifically restricted from claiming ITC under GST laws.
For more finance content visit Swipe Blogs