LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

ITC on repair & maintenance of Motor Vehicle

Simran Katyal (Chartered Accountant) (182 Points)

10 December 2017

Hello,
Sec 17(5) restricts for availing ITC on purchase of motor vehicle.
Can ITC on repair & maintenance expenses of motor vehicle, used in business (not motor vehicle business) be availed ?

Reply
Follow
Share

13 Replies

Santosh Yadav (106 Points)
Replied 10 December 2017

you can claim repairs and maintenance of motor. vehicle

sarvesh toshniwal (Student Others) (118 Points)
Replied 10 December 2017

you cannot claim any expense on motor vehicles...

Sumit Gupta (3 Points)
Replied 11 December 2017

yes you cannot claim any expenses on motor ,vehicle bcs motor vehicle is not a capital asset for yourself

RAJA P M ("Do the Right Thing...!!!") (127074 Points)
Replied 11 December 2017

Yes... You can... if it's furtherance of business

You can claim ITC for the Repairs and Maintenance of Motor vehicles. No more restriction for repairs and maintenance charges...

GOOD LUCK...

2 Like

JEEVIKA AND CO (PROPRIETRIX) (153 Points)
Replied 11 December 2017

YES... YOU CAN TAKE GST INPUT CREDIT FOR REPAIRS AND MAINTENANCE OF VEHICLES

Rakesh Sarswath (Article Student-GST Specialization) (190 Points)
Replied 11 December 2017

As per section 17(5) of CGST, restriction on availment of ITC is only in case of purchase of motor vehicle whereas there is no such restriction on repair and insurance taken on such motor vehicle.

So you will be eligible to take ITC on the same.

1 Like

SANGHARSH PAWAR (ACCOUNTS MANAGER) (69 Points)
Replied 25 May 2018

Services in the nature of repairs, insurance etc. for motor vehicles are not hit by the blocked credit provisions of GST law and accordingly ITC for the same is available if these services are used in the course or furtherance of business.

deepak786 (Ludhiana) (22 Points)
Replied 15 June 2018

Keh do ki ye sab jhoot hai

Jaysingh (Income Tax GST Assessment Accounting finance) (39 Points)
Replied 15 June 2018

Originally posted by : Simran Katyal
	Hello, Sec 17(5) restricts for availing ITC on purchase of motor vehicle. Can ITC on repair & maintenance expenses of motor vehicle, used in business (not motor vehicle business) be availed ?

Sec 17(5)(a) are only for purchase of motor vehicle and in whole sec17(5) sub clause (a) to (h) there is no specifically mention about the ITC on repair and maintaince not allowed. The opening line of section 17 (5 ) mentions that “input credit shall not be available in respect of the following….”. The wordings “in respect of” cannot be construed as ” in relation to”. Whereas “in relation to” is larger in scope, “in respect of” is a restricted term and does not indicate that one is required to go beyond what is mentioned specifically in the section.

THEREFORE ITC IS ALLOWABLE IF IT IS USED FOR FURTHERANCE OF BUSINESS.

Jaysingh (Income Tax GST Assessment Accounting finance) (39 Points)
Replied 15 June 2018

THEREFORE ITC IS ALLOWABLE IF IT IS USED FOR FURTHERANCE OF BUSINESS.

1 Like

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 15 June 2018

YES, U CAN.. itc on repair & maitence of motor vehicle if its Furtherance of business

nikhil jain (regn) (22 Points)
Replied 03 July 2018

yes we Can go for book Itc of Repair and Maintence of Moter vehicle Because There is No Restriction to avail the input of Expences in Relation With Motor Vehicle There is Only Restriction Regarding Avail ITC Purchase Motor Vehicle (other than GTA,transporter of passenger and Motor Driving School and Further supply of Such Motor Vehicle in Open Market).

Kartikey Jain (Intern) (2377 Points)
Replied 04 July 2018

There is lack of clarity on this matter as Sec 17(5) of CGST Act is specifically excluding just Motor vehicles. In the previous regime, ancillary expenses like repairs, motor insurance were ineligible for availing credit. However currently, most assessees are taking up ITC on motor insurance and repairs as of now. Hope, department comes up with a circular or notification at the earliest to clarify its stand on the issue.