Motor vehicle GST

351 views
User Avatar

account manager
777 Points Posted on 23 September 2020

We are a  manufacturing Pvt. Ltd. company , recently we have purchased a Maruti A-Star CAR of our Company Name and we are  use this car of our company different type of work purpose. Example --- for our staff  going to market for materials purchase purpose, staff going factory to  heat treatment plant for Heat Treatment purpose , Some Finished Material deliver to party  address. Can we claim full ITC for above Motor car...... 

0 Reply Share Follow
On 23 September 2020 at 14:45 Report
Replies (3)
Quick Summary
This discussion clarifies whether a manufacturing company can claim full Input Tax Credit (ITC) on a motor vehicle purchased for business purposes. According to Section 17(5) of the CGST Act, ITC is generally blocked for motor vehicles with a seating capacity of 13 persons or less, unless the business is specifically involved in supplying cars, passenger transport, or running a driving school. Therefore, ITC on a Maruti A-Star used for various business activities cannot be claimed.

User Avatar

Manager-Accounts & GST Consultant
5124 Points Posted on 23 September 2020

ITC cannot be claimed if it has a seating capacity of less than 13 persons.

Reply
On 23 September 2020 at 17:22
User Avatar

Tax and Business Consultant
11616 Points Posted on 23 September 2020
Section 17(5)_ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver).
except (Available only in this case)
1. You are in the business of supplying cars,
2. You are providing transportation of Passengers services
3. You are running a driving school.

So, in your case ITC is not available as it's blocked u/s 17(5) of CGST Act, 2017
Reply
On 23 September 2020 at 17:23
User Avatar

Student
23693 Points Posted on 23 September 2020
ITC on Motor Vehicles is specifically Blocked under Section 17(5) of the CGST Act 2017.

So you cannot claim ITC on Maruti A Star Car even if it is being used in the the course or furtherance of business. Section 17(5) overrides the Provision of Section 16(1) of the CGST Act 2017.
1 Reply
On 23 September 2020 at 20:36

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Capital gains incidence due to bonus shares
  2. Amendment of Object Clause of Memorandum
  3. How Can I Request a Refund for an Accidental Airte
  4. TDS on salary paid in cash
  5. YEAR END GST ENTRY FOR RCM NOT PAID RS 5000 I.E OU
  6. Last Date To Fill ITR For Non-Audit Case
  7. Guidance Required on Filing Fresh Registration und
  8. IT Return Refund Status AY 2026-27
  9. Clarification Regarding Income Tax Demand Notice
  10. Online PAN Download: Check How?

More recent discussions | Post

Related Topics :

Loading