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Queries regarding gst input credit

27 May 2018

Sir,

Shall a construction material supplier gets input credit on purchse of trucks and dumpers for transpotation of material? And for purchase of motor parts and tyres to be used in trucks and dumpers?

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6 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 27 May 2018

ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another.Your case covered in exception to ITC not available in case of motor vehicle.you can claim ITC on Trucks, dumpers, its parts and tyres.

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Ravi SADhiyan (Practice) (4510 Points)
Replied 27 May 2018

Originally posted by : Shailesh Bhagat
	Sir, Shall a construction material supplier gets input credit on purchse of trucks and dumpers for transpotation of material? And for purchase of motor parts and tyres to be used in trucks and dumpers?

You can claim ITC

Vinod Babu (24196 Points)
Replied 27 May 2018

Yes you can take input credit provided it is excusively used for transportation of goods. Kindly refer section 17(5)(a)(ii).

Sandeep Agarwal (Tax Advocate) (45 Points)
Replied 27 May 2018

As u r registered for selling construction material but not as transporter, so u would not be elegible to take ITC on purchase of truck, tyre etc.

Vinod Babu (24196 Points)
Replied 27 May 2018

Yes it is correct agree with you sandeep sir.

Shailesh Bhagat (16 Points)
Replied 28 May 2018

Sir there is no such provision and condition that user of motor vehicles should be a tranporter. It say that motor vehicle should be used for transportaion of goods.