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Motor car purchase

Sovon Sett (Accountant) (46 Points)

14 November 2023

how will show Motor car purchase entry in accounts and gst claim

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prasad Nilugal ( GST Practitioner & Accounts ) (14912 Points)
Replied 14 November 2023

Motor Car A/c Dr ( Non Current Asset )
CGST. A/c Dr
SGST A/c Dr
To Trade Creditors A/c Cr
( purchase of Motor Vehicle )

Motor Car A/c under Non-current Asset Balance sheet.

You can not claim Input tax credit on Motor vehicle , because its blocked credit as per section 17(5) of the CGST act , unless you fulfil certain conditions under section 17(5) , so please refer section 17(5) of the cgst act .

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CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 14 November 2023

Motor car account will be debited as non current asset along with GST, insurance and other charges involved to being the car on road.

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 14 November 2023

Motor Car A/c Dr - Rs. XXXXXX
CGST. A/c Dr - Rs.XXXX
SGST A/c Dr - Rs.XXXX
To Trade Creditors A/c Cr - Rs. XXXXXX

(Motor Car ledger is Under Fixed Asset).

The amounts like Insurance, Fittings, Road Tax and Other Charges will be add in the ledger of Car A/c.

If You are eligible to claim ITC of motor car purchase then claim.
If not eligible then add the GST value into the Car A/c.

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