ITC on vehicle

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.

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...
Thanks

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. 

 

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