ITC ON EV

Under the Goods and Services Tax (GST) regime, Input Tax Credit (ITC) for motor vehicles is subject to specific restrictions.  Generally, ITC  is not allowed for motor vehicles with an approved seating capacity of 13 or fewer persons (including the driver), which covers most cars used for business travel.

However, there are exceptions where ITC can be claimed:

1. Vehicles exceeding 13 seating capacity: Buses used for public or staff transportation

2. Vehicles used for transporting goods: Trucks, tempos, and other goods carriers

3. Vehicles used for imparting driving skills: Cars used by driving schools

4. Vehicles used for further supply: If a business is involved in the supply of vehicles (e.g. car dealerships)

So, if your 4- wheeler falls into one of these categories, you may be eligible to claim ITC.