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ITC quary regarding personal car uses for delivery goods

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Provil Jain

15 Points Posted on 13 September 2020

I used my creta Car for the purpose of delivery or transport of goods to customer can I claim ITC on such car

Replies (4)

Quick Summary

This discussion clarifies that you generally cannot claim Input Tax Credit (ITC) on a personal car, even if used for delivering goods. The CGST Act, specifically Section 17(5), blocks credit for motor vehicles designed for passenger transport with a seating capacity of 13 or less. Using a private vehicle for business purposes does not change this restriction.

Deepak Gupta

CA Student

15932 Points Posted on 13 September 2020

No. Blocked credit.

Since it is a motor vehicle designed for transportation of persons with seating capacity <=13 persons.

Using it for delivery purposes won't make any difference since it is registered for private use.

annu Goyal

1102 Points Posted on 13 September 2020

No, you cannot take benefit...
As blocked under sec 17(5) (1) , car is design mainly for seating it's does effect whether it is use for goods or passengers...
it's come within limit of less than 13 so you cannot take ITC

Shivam RC

Student

23693 Points Posted on 14 September 2020

No...

ITC on Motor Vehicles is specifically BLOCKED under Section 17(5) clause (a) of the CGST Act 2017. Moreover, as per clause (g) of sub section (5) of Section 17 of the CGST Act 2017, ITC on Personal Goods or Services is ineligible.

Hence you cannot claim ITC on your Hyundai Creta Car since it is not a commercial vehicle. It is registered for Personal use.