Celebrate Freedom with 10% OFF on CAclubindia Pro Membership. Subscribe Now!

ITC for Vehicle used for Transportation of Goods

2750 views

Save Share

Nayan Surve

13 Points Posted on 06 December 2020

The case is service provider say repairer of goods arranges for transport of those repaired goods at the place of receiver.
The owned small goods transport vehicle (like Tempo) is used for that transportation.

Whether ITC would be allowed on purchase of vehicle in that case considering provisions of clause (ii) of Section 17(5) of CGST act, 2017 since it is used for transportation of goods ?

Replies (5)

Quick Summary

This discussion explores the eligibility for Input Tax Credit (ITC) on vehicles used for transporting goods, specifically addressing a scenario where a repairer arranges transport of repaired goods using their own small goods vehicle. The consensus suggests that ITC is generally available on such vehicles, provided all conditions under Section 16(2) of the CGST Act 2017 are met. This includes the vehicle being used for business purposes to transport taxable goods and being recorded as a business asset.

JATINDER KUMAR

Accountant

3662 Points Posted on 06 December 2020

You can claim ITC

Nayan Surve

13 Points Posted on 06 December 2020

Thanks for your views!

Pankaj Rawat

GST Practitioner

55067 Points Posted on 06 December 2020

Yes ITC available on vehicle being used for transportation of Goods.

Shivam RC

Student

23693 Points Posted on 07 December 2020

Yes you can claim Input Tax Credit ( ITC ) on Motor Vehicle ( Tempo ) used for Transportation of Goods provided all the FOUR CONDITIONS as laid down U/s 16(2) of the CGST Act 2017 is satisfied...