ITC on repair & maintenance of Motor Vehicle

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

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.

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.

Keh do ki ye sab jhoot hai 

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.

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.

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

 

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).  

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.