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Itc on bicycles used within the factory


ARS BHARATHI (Executive in gst department)     21 February 2020

ARS BHARATHI
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Need a clarification:

We procured some bicycles for movement inside the plant to move from one building to another building.

Whether ITC is allowed on such purchases of bicycles?

Please give your views

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RAJA P M ("Do the Right Thing...!!!")     21 February 2020

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As per my view.,

Yes... You can claim ITC for the purchase of bicycle which is used in Your business activities if it's not blocked u/s 17(5) of CGST act...

Wait to others view...

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ARS BHARATHI (Executive in gst department)     21 February 2020

ARS BHARATHI
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With reference to the above, there is some school of thought is that the credit is inadmissible in terms of section 17(5) (g) "goods or services or both used for personal consumption". I feel though it is used by workers to move within the plant, it is eligible as the same are used within the principle place of business and not the other way, i,e, not used at home or outside. Hence i feel it is admissible under capital goods category. Other opinions are welcome.

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RAJA P M ("Do the Right Thing...!!!")     21 February 2020

RAJA P M
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Yes... I agreed to above. Also ITC is available...
You can take ITC for the purchase of Bicycle...

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sabyasachi mukherjee   21 February 2020

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YES INPUT TAX CREDIT AVAILABLE...

Anshuman Basu (account -GST)     21 February 2020

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Dear all expert I want to now if they purchase motorcycle instead of bycicle then what is the tax treatment?

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ARS BHARATHI (Executive in gst department)     21 February 2020

ARS BHARATHI
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Not eligible 17(5)

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Pankaj Rawat (GST Practitioner)     21 February 2020

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Dear ARS

Yes if the cycle is used in business , offcourse can avail ITC on same .
Cycle is not covered under Section 17(5) , because it's clearly prescribed therein the said section that credit is block on Motor vehicle & Bicycle do not fall under definition of Motor vehicle ( refer 2(78) of CGST Act))

Dear Anshuman
If Motor cycle is purchase then ITC is not available.
As already refer above section 17(5)(a) Motor vehicle transportation of passenger less than 13 person, if not used for purposes : further supply of m. vehicle, transportation of passenger, imparting of Training, the Credit is not available.

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Subodh KS   22 February 2020

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No it wil fall under block credit activities

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Pankaj Rawat (GST Practitioner)     23 February 2020

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@ subodh 

Can you support your reply with any section or Notification

 


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