ITC ON VEHICLE PURCHASE FOR TRANSPORTATION OF GOODS

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I have a flour mill recently opened by me. I want to buy a tempo for transportation of flour. I want to know that can I avail input credit of gst paid on purchase of tempo and also refund from GST department for this gst.
Replies (3)
You can claim INPUT TAX CREDIT ( ITC ) of GST paid on purchase of Motor Vehicle ( Tempo ), used for Transportation of Goods.

Usually ITC on Motor Vehicles is specifically BLOCKED U/s 17(5) of the CGST Act 2017. But there are few exceptions of this Provision. Your case is one of it ( Transportation of Goods ).

Therefore you can claim ITC provided that all the 4 conditions as laid down U/s 16(2) of the CGST Act 2017 is satisfied i.e.

1). Received the Goods or Services.
2). Possession of a Tax Invoice.
3). Supplier must have paid the taxes to the Government exchequer; and
4). Recipient Must have filed the Return.

If you satisfy all the above mentioned 4 conditions, claim ITC of GST paid.

However you will not get any REFUND from the Government Department. Once you claim ITC, the amount gets credited to your electronic credit ledger ( E-Credit Ledger ) which you can use to pay your output tax liability.

Warm Regards.
Thanks you for your reply
Your always Welcome Sir


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