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ITC On heavy vehicles

Madhu M (GST PRACTITIONER) (236 Points)

10 June 2022

Hi sir
I am Registered person running hardware business and now started my own Transport Business..my Query is ..can I claim ITC on purchases of vehicles and what is rate of GST for transport please Advise...
thaks in Advance

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11 Replies

sabyasachi mukherjee (26043 Points)
Replied 10 June 2022

Read sec 17(5) blocked credit.

2 Like

Dnyanesh Deshpande (Aspiring CA) (133 Points)
Replied 11 June 2022

If transport business is what for vehicles are used, then yes you can claim itc

1 Like

sabyasachi mukherjee (26043 Points)
Replied 12 June 2022

Have complete knowledge then comment.

Dnyanesh Deshpande (Aspiring CA) (133 Points)
Replied 12 June 2022

Sabyasachi, read it carefully, passenger transport credit is blocked. And if you want to more clarity then visit https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=116134.

1 Like

sabyasachi mukherjee (26043 Points)
Replied 14 June 2022

I do not want any clarification.

1 Like

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 14 June 2022

Yes, ITC is allowed on purchase of heavy goods vehicle to be used for goods transport in the furtherance of business.

Rate of GST for GTA under forward charge - 5% without ITC or 12% with ITC

1 Like

sabyasachi mukherjee (26043 Points)
Replied 15 June 2022

Let me just explain the details of Sec 17(5)
1. though the defination of input tax is broad , input tax credit shall not be available in respect of activities and transactions specified in Sec 17(5). The specific exclusion means that for such exclusion by blocking credit the input tax credit .
In 2019 some of the sections are amended substantially vide cgst act w.e.f. 1.2.2019.
Some itc which was not eligible earlier is eligible from 2019. Itc is not available from 2019.Motor vehicles forvtransportation of persons having approved seating capacity of 13 persons or less including driver except when used for further supply. Input tax credit on leasing _hiring is also not available. vessels or aircrafts used for making outward supply of same category of goods and services is disallowed.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 16 June 2022

You can claim so as you are using it for transport business, but if you not paying any tax on transport receipts on forward charge then no ITC will be available

1 Like

Madhu M (GST PRACTITIONER) (236 Points)
Replied 06 July 2022

Thanks for your support and information sir
and one more doubt sir how to match GST turnover in 44AE Case ....?

2 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 08 July 2022

MATCH WITH WHAT????

1 Like

Madhu M (GST PRACTITIONER) (236 Points)
Replied 08 October 2022

Madhu M • 08 October 2022

Dear sir' madam

one of my client is registered person and doing hardware business as well as he is having one own heavy vehicle (Truck) for transport of Goods (not in GTA)
my doubt is transport Receipt is taxable or not ???
he is not paying any Tax on transport receipt now ..
please Advise
thanks in advance