ITC vehicle repair

For those who are of the opinion that ITC is allowed on repair of company owned vehicle, please let me know reason supporting with the reference of act
Replies (9)
My view is NO & NO , u cant take input on repair of Vehicle
ITC on motor vehicle will only be available if you are a car reseller or a transporter.
But,
I have different reply...


@ Mr. Pranjal Mishra.,

ITC allowed for the REPAIRS AND MAINTENANCE of the Vehicles which is under Business...

So, You can avail the ITC benefits. No more restriction...

Restriction on availment of ITC in case of purchase of motor vehicle. 

 No such restriction on repair on motor vehicle.

My opinion, you will be eligible to take ITC on the same.
 

I am also of the view that we can't take input of vehicle repair

but i want to know on what grounds many are of opinion that ITC is available

Yes ITC is available for the repairs and maintenance... 

For those who are of opinion that ITC is allowed, focus on below extract of Section 17 (5)

.. input tax credit shall not be available in respect of the following, namely:-
[a] motor vehicles..

Its saying "in respect of" motor vehicles, this means it includes all expenses related to vehicles

So apart from exception ITC is not allowed

Your contrary view with reason is most welcome

Hi,

As per Sec 17(5)-"input tax credit shall not be available in respect of the following......-

 

As the law uses the words 'in respect of' the scope is restricted  .However if the same was 'in relation to' then we would have considered a wider scope and same way tax paid with respectto  repairs and maintenanece of a motor vehicle  would not have been available for claim of ITC.

As words are restictive in nature we sholud only restrict our scope to motor vehicle.

The Government recently passed CGST (Amendment) Act 2018, IGST (Amendment) Act 2018, UTGST (Amendment) Act 2018 and GST (Compensation to States) Amendment Act 2018 by publication in Official Gazette which received Presidential assent on August 29, 2018 Under the amended provision ITC is ineligible for General Insurance, servicing, repairs and maintenance in respect of motor vehicles for transportation of persons having approved seating capacity up to 13 persons (including driver), vessels and aircraft except when they are used for making specified taxable supplies. With this amendment it is clear that we cannot claim the ITC for repair and maintenance of vehicles

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