If the company purchased motor bike including insurance, can they claim itc on that?
Replies (5)
Quick Summary
This discussion clarifies whether a company, specifically a tea manufacturer, can claim Input Tax Credit (ITC) on the GST paid for purchasing a motorbike and its insurance. The consensus is that ITC cannot be claimed for motor vehicles unless they are purchased for resale, for transporting passengers or goods, or for teaching driving. Therefore, a tea manufacturing company cannot claim ITC on a motorbike purchase.
No, The Company can not claim the ITC of GST paid on purchase of Motor bike including insurance thereof.
As per provision, GST can be claimed for vehicles only if (i) they are bought for resale, and (ii) they are bought for use in transporatation of passengers / Goods; (iii) they are bought for use in teaching of driving such vehicles.