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ITC on vehicle

Only Fun Time (22 Points)

04 February 2021

is itc available on mini truck purchased for business purpose for distributing my wholesale items to shop to shop

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3 Replies

PRASANT BISOYI (249 Points)
Replied 04 February 2021

Yes, you can avail the ITC on the truck purchase for transportation of goods. As it is not reflected in the Section 17(5) of CGST, Act which is not blocked...

Only Fun Time (22 Points)
Replied 28 March 2021

Thanks

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 29 March 2021

GTO (Goods Transport Operator) activity is exempt, if your outward supply is exempt and not taxable, then ITC cannot be claimed as there is no outward taxable supply.

Please note, exemption as per GST law is absolute, i.e. if activity is exempt, taxpayer is not expected to pay and will not be eligible for ITC. Where tax is paid inadvertently, ITC does not automatically become eligible and dept. could disallow such credits.