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ITC ON EV

Others 1294 views 1 replies

SOURAV SAMANTA

106 Points Posted on 28 October 2024

Our firm is electronic lamp manufacturing company. A partner will buy an electric vehicle four wheeler in company name. My question is CAN COMPANY CLAIM GST INPUT ON THIS PURCHASE ?
Because I have seen on internet that if car buy for business purposes then it can be taken ITC . So business purpose means company will have to same Electric Vehicle dealers or manufacturing business or business purposes meaning car will be used for sales promotion, client visit or else. Please help me

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 28 October 2024

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:

Vehicles exceeding 13 seating capacity: Buses used for public or staff transportation
Vehicles used for transporting goods: Trucks, tempos, and other goods carriers
Vehicles used for imparting driving skills: Cars used by driving schools
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.