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ITC ON BIKE

kalpataru sahoo (Accountant) (39 Points)

19 May 2018

can i take if i buy a bike for my business

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9 Replies

Jatin (Accountant) (3479 Points)
Replied 19 May 2018

No, you can't take ITC

kalpataru sahoo (Accountant) (39 Points)
Replied 19 May 2018

ayn circular

Jatin (Accountant) (3479 Points)
Replied 19 May 2018

Please read section 17(5)

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 19 May 2018

No ,you can't avail ITC

RAJA P M ("Do the Right Thing...!!!") (127142 Points)
Replied 19 May 2018

ITC not available for Purchase of Two wheeler

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CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 20 May 2018

See section 17(5) not allowed

abhiabbas (erp consultant) (55 Points)
Replied 20 May 2018

Yes you can take credit if its for business use , Sec 17(5) only restricts motor vehicle .Two wheeler not comes under the definition of motor vehicle. its motor scooter

H.R. Sreepada Bhagi (Practicing Cost Accountant) (50 Points)
Replied 04 June 2018

Dear All You have to see the definition of Motor Vehicle in Motor Vehicles Act, 1988. Proper reading of Section 17(5) of CGST Act, makes it clear that on Motor bike Input Tax of GST is not available. Read the above section given below for ready reference.

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:

(a) motor vehicles and other conveyances except when they are used

(i) for making the following taxable supplies, namely:— (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods;

Definition of Motor Vehicle in the Motor Vehicles Act, 1988 : "motor vehicle" or "vehicle" means any mechanically propelled vehicle adapted for use upon roads whether the power of 1 Subs. & ins. by Act. propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding thirty-five cubic centimetres;

(M) 9945881990

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