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ITC on Vehicles

Prasad Royals (86 Points)

23 September 2019

my client purchased a auto and a bike to distribute the goods to customers can he claim ITC on those vehicles

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Shivam RC (Student) (23683 Points)
Replied 23 September 2019

No Sir....

Your client cannot claim ITC on Motor Vehicles as it is specifically BLOCKED U/s 17(5) clause (a) of the CGST Act 2017.

Also, if your client has purchased the said Motor Vehicles to distribute to his/her customer by way of Gift, he can't claim ITC as it is BLOCKED U/s 17(5) clause (h) of the CGST Act 2017.

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Piali Roy Chowdhury (605 Points)
Replied 23 September 2019

@ Shivam RC

the client can claim ITC on Motor Vehicle as the said Motor Vehicles ( Auto and Bike ) is used for Transportation of Goods.

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Nimitha Kundanam (Senior Executive Accountant) (250 Points)
Replied 23 September 2019

I agree with piali Roy chowdhury

Shivam RC (Student) (23683 Points)
Replied 23 September 2019

Ma'am the clause you mentioned is for Vessels or Aircraft. The term Vessels or Aircraft is not defined in the CGST Act 2017.

The extract of the Provision of Section 17(5) of the CGST Act 2017 is reproduced below :

[aa] vessels and aircraft except when they are used––

[i] for making the following taxable supplies, namely:—

[A] further supply of such vessels or aircraft; or

[B] transportation of passengers; or

[C] imparting training on navigating such vessels; or

[D] imparting training on flying such aircraft;

[ii] for transportation of goods.

Please clarify me Ma'am ...

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