Itc on bicycles used within the factory

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
Replies (9)
Quick Summary
This discussion explores whether Input Tax Credit (ITC) can be claimed on bicycles purchased for internal factory use. While some believe it's admissible as capital goods used for business activities within the principal place of business, others raise concerns about Section 17(5)(g) regarding personal consumption. The consensus leans towards ITC being available as bicycles are not classified as motor vehicles under Section 2(78) of the CGST Act, unlike motorcycles which are generally blocked credits.

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...
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.
Yes... I agreed to above. Also ITC is available...
You can take ITC for the purchase of Bicycle...
YES INPUT TAX CREDIT AVAILABLE...
Dear all expert I want to now if they purchase motorcycle instead of bycicle then what is the tax treatment?
Not eligible 17(5)
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.
No it wil fall under block credit activities

@ subodh 

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