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ITC on vehicle

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Only Fun Time

38 Points Posted on 04 February 2021

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

Replies (3)

Quick Summary

This discussion clarifies whether Input Tax Credit (ITC) is available for a mini truck purchased for business purposes, specifically for distributing wholesale items. Generally, ITC on vehicles for goods transportation is claimable as it's not explicitly blocked under Section 17(5) of the CGST Act. However, if your outward supply activity is exempt from GST, you cannot claim ITC, even if tax was paid inadvertently.

PRASANT BISOYI

170 Points Posted on 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

38 Points Posted on 28 March 2021

Thanks

CA Akshay Hiregange

Partner - Audit & Assistance

3708 Points Posted on 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.