ITC on motorcycle

ITC / Input 5505 views 7 replies
sir meri wholesale medical ki shop h. medicines ki supply ke liye mene 18.8.2017 ko motorcycle kharidi(buy) h...

to sir mene iske upar jo 28% se GST pay kiya h kya m uski ITC Claim kr skta hu...

if yes to fir kitni aur kab kr skta hu
Replies (7)
you can claim full ITC on motorcycle of 28% if used only for business in the month in which bike was purchased
sir ye motorcycle finance pr h iski 24 installment h jabki Rs 20000 Down payment diya h.... is se thodi na koi fark padega ITC CLAIM KRNE ME

As per GST law, the ITC on motor vehicles paid shall not be allowed to set off against output tax liability. In another word, you cannot claim the credit on motor vehicles and other conveyance.

Example: Suppose you buy a car for your business. As per motor vehicle act, the car is covered under the definition of motor vehicle, hence ITC on car shall not be allowed.

sir ek reply me to koi bol rha ki m full ITC claim kr skta hu .. jabki aap bol rhe ho ki m nhi kr skta .. m confused ho gya hu

Cases where Input Tax Credit (ITC) shall be available on motor vehicle under GST

There are only four cases where ITC on motor vehicles are allowed under GST. The four cases are as follows:

  • Dealer of motor vehicles: If you are a trader of a motor vehicle, then ITC on cars purchased shall be allowed.
  • Transportation of passengers:  If you are a travel agent or a taxi driver and providing services of transportation to the passengers, then the ITC shall be allowed to set off. 
  • Driving schools:  If you are imparting training on driving, flying, navigating such vehicles or conveyance, then ITC shall be allowed on motor vehicles.
  • The vehicle used for transportation of Goods: If you are using motor vehicles to transport your goods from one place to another, then the credit of GST shall be allowed. However, here we are not talking about the Goods Transport Agency (GTA).
thank you so much

ITC allowed only on motor vehcile as per the difinition of motor vehicle act 1988 and no ITC can be claimed on two wheeler.


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