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ITC Claim on vehicle purchase

Rajan Dubey (68 Points)

06 June 2023

Sir can we claim ITC on vehicle purchase registered under commercial registration

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7 Replies

Sandeep Jain (Pivate) (1184 Points)
Replied 06 June 2023

No you can't avail ITC

B Durga Prasad (Student) (175 Points)
Replied 06 June 2023

Yes, you can claim Input Tax Credit (ITC) on the purchase of a vehicle registered under commercial registration, provided it is used exclusively for business purposes and meets the other eligibility criteria under GST rules.

Business Use: The vehicle must be used exclusively for business purposes. If the vehicle is used for both personal and business purposes, ITC can be claimed only for the portion that is used for business.
Registration: The vehicle should be registered under the name of the registered business entity. If the vehicle is registered in the name of an individual and not the business, ITC cannot be claimed.
Taxable Supply: The purchase of the vehicle should be considered a taxable supply under GST. If the vehicle is used for exempt or non-GST supplies, ITC cannot be claimed.
Eligible GST: The GST charged on the purchase of the vehicle should be eligible for ITC. This means that the supplier of the vehicle should have charged and paid the appropriate GST on the sale.
Documentation: Proper documentation, such as purchase invoices, tax invoices, and other supporting documents, should be maintained to substantiate the claim for ITC.

To learn more about Input Tax Credit under GST click here
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Imthias ahamed Kormath (910 Points)
Replied 06 June 2023

Please read section 17(5) and it's sub sections

sabyasachi mukherjee (26043 Points)
Replied 06 June 2023

Sec 17(5) is applicable if it is used for the purpose of carriage and transport services with specific interests and intentions.

Sanjana Mohanty (100 Points)
Replied 12 June 2023

To claim Input Tax Credit (ITC) on a vehicle purchase, ensure it's used exclusively for business, registered under the business name, eligible for GST, and proper documentation is maintained.

Sanjana Mohanty (100 Points)
Replied 13 June 2023

Yes, you can claim Input Tax Credit (ITC) on a vehicle purchase registered under commercial registration, subject to certain conditions and restrictions.

Pranjal Gupta (141 Points)
Replied 13 June 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.

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