ITC ON VEHICLE

As per section 17 (5) input tax credit shall not be available in respect of the motor vehicles and other conveyances, however, following are the exceptional to the same –

1. Motor vehicles and other conveyances used for making following taxable supplies –

• Further supply of such vehicles or conveyances;
• Transportation of passengers;
• Imparting training on driving, flying, navigating such vehicles or conveyances.

2. Motor vehicles and other conveyances that has been used for transportation of goods.

If you are using the vehicle for transportation business you can consider the same as capital assets and claim the ITC on the same.