Motor car purchase

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 .  

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

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.

Eligibility is always there but it depends on the utilization.

Car given to end customer how to accounting in books

 

If value of vehical is 10 lakh

Insurance 20k

And road tax paid is 50 k,

Then can we charge depreciation on ₹1070000