LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Itc on car purchased

obeid (learner) (292 Points)

16 November 2017

Can the firm claim the ITC on new car purchased? how much ITC to be claimed in 1 st year and subsequent years?

Depreciation can also be claimed if we take ITC please clarify

Reply
Follow
Share

1 Replies

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 16 November 2017

Sec.17(5) of CGST Act - input tax credit shall not be available in respect of motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies,
(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;

if your car falls in any of the specified exceptions, ITC can be claimed in full at once.

If you claim ITC, then you can charge depreciation on value of asset without gst.

1 Like