Itc on insurance of motor vehicle

As per Section 17(5), ITC is not allowed on neither on Motor Vehicles nor on their Insurance, Servicing, Repair and Maintenance.

But there are some Exceptions is which assessee can take ITC on Motor Vehicles as well as their Insurance, Servicing, Repair and Maintenance:-

1) Assessee is engaged in the business of Supply of such motor vehicles.

2) Assessee is engaged in the business of Transportation of Passengers.

3) Assessee is engaged in the business of providing Training of driving such vehicle.

4) Assessee is using such vehicle for the purpose of Transportation of goods from one place to another.

If any assessee is using any motor vehicle, apart from the above four scenerios, then in that case ITC shall be Ineligible.

Thanks

ITC available if it is used in delivering Goods.

If the motor vehicle is being used for Transportation of Goods, then you can claim Input Tax Credit ( ITC ) on Insurance, Repair and Maintenance Services of Motor Vehicles. Refer Proviso to clause (ab) of Section 17(5) of the CGST Act 2017.

Thank u so much

Your most Welcome @ Anuj C.M Sir...

Sir, ours is a small trading concern, Qualis vehicle is being used for only business, to book parcel, I. e goods, bring goods from transport offices. Can we claim ITC of Insurance, Repairs and maintenance? please clarify