ITC on Two wheeler

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100 Points Posted on 27 August 2020
agar me apane business purpush ke liye two wheeler bike purchase karta hu to is par mujhe itc credit milega ya nahi
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On 27 August 2020 at 19:13 Report
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Quick Summary
Purchasing a two-wheeler for business purposes generally does not allow for ITC (Input Tax Credit) under GST, as it's typically considered a motor vehicle for passenger transport and falls under blocked credits as per Section 17(5) of the CGST Act. However, ITC may be available if the business involves selling bikes or providing bike training services. If the two-wheeler is used for transporting goods in a commercial capacity, it might be eligible, but bikes are usually not classified as goods carriage vehicles under the Motor Vehicle Act.

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Tax and Business Consultant
11616 Points Posted on 27 August 2020
No, ITC of Bike is not available..it's blocked u/s 17(5).
ITC available only if you have a business of selling bike, or providing services of bike drive training...
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On 27 August 2020 at 19:25
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100 Points Posted on 27 August 2020
But i use in my business like material dispatch
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On 27 August 2020 at 19:42
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1313 Points Posted on 27 August 2020
If motor vehicle is used for business purpose, u/s 2(59) of GST Act it is furtherance of business. Hence, ITC can be claimed. ITC would be available only to the extend of the amount of tax paid on inward supplies being used for business purpose.
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On 27 August 2020 at 20:43
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Tax and Business Consultant
11616 Points Posted on 27 August 2020
Credit is available if Commercial vehicle used for transportation of goods in business.
But on bike, We cannot take credit because as per Motor Vehicle Act, 1988 bike is for transportation of passenger. (it's not considered as Goods carriage Vehicle) And ITC on motor vehicle used for transportation of passenger upto seating capacity of 13 person including driver is blocked sec 17(5) of CGST Act, 2017. Hence in your case credit is not eligible.
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On 27 August 2020 at 21:47
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T
405 Points Posted on 28 August 2020
Agree with sagar ji
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On 28 August 2020 at 02:06
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100 Points Posted on 28 August 2020
Thank you so much
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On 28 August 2020 at 08:02
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Tax and Business Consultant
11616 Points Posted on 30 August 2020
Welcome.......Mr. Manoj Patel.
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On 30 August 2020 at 00:21

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