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ITC ON MOTAR VEHICLES
can we take input tax credit on gst paid for purchase of motar vehicle where our bussiness is not tranportation but we gave it on hire to outsiders.
Replies (2)
Yes, you can avail ITC in your case.
Sec 17(5)(a) talks about blocked credit on motor vehicles in general. But if such motor vehicles are used for making further supply(including giving it on hire) of such motor vehicles, then you are eligible to claim ITC. And as per Sec 7(1)(a), definition of supply includes rental/lease also if made for business purposes.
So, you are eligible to claim ITC on such motor vehicles.
Sec 17(5)(a) talks about blocked credit on motor vehicles in general. But if such motor vehicles are used for making further supply(including giving it on hire) of such motor vehicles, then you are eligible to claim ITC. And as per Sec 7(1)(a), definition of supply includes rental/lease also if made for business purposes.
So, you are eligible to claim ITC on such motor vehicles.
Since it is your business you can definitely take the itc as explained by ahemd sir
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