ITC on payment of Insurance

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Surya Phani

25 Points Joined June 2022

Hellow Everyone,

Please tell me whether I can take ITC on insurance taken on motor vehicle used for business purpose?

Replies (5)

According to my study:
you can, for only :
1. labour insurance
2. commercial truck, tempo. if they are utilised for business only.

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pavan prabhas

206 Points Joined December 2018

ITC can be claimed if it is for business purpose.

CA Rashmi B

Assistant Manager

787 Points Joined January 2019

ITC of motor vehicles used for transportation of goods can be availed. or if used for further supply of such motor vehicle. if it's for passenger vehicles though it's used for business ITC would be ineligible

Sravan Yelagandula

Employee

87 Points Joined September 2017

Section 17(5) (ab) of CGST Act, denies input tax credit on the services of general insurance, servicing, repair and maintenance for the motor vehicles having seating capacity of less than thirteen. At the same time input tax credit is available on the services related to motor vehicle insurance, repair and maintenance of such vehicles if they are used for the purposes mentioned in the Points A, B & C as below

A. Further supply of such motor vehicles – the registered person is in the business of selling such motor vehicles B. Transportation of passengers – the registered person is in the business of transport services of passengers
C. Imparting training on driving such motor vehicles – the registered person is in the business of providing training on driving by using such motor vehicles