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Regarding input tax credit on truck purchase

Rajiv (Senior Accounts Officer) (1548 Points)

21 September 2018

Experts,

Is input tax aviliable on purchase a truck in following condition ?

1- If business is releated of Motor Vehicle

2-If business is not releated with Motor Vehicle

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11 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 21 September 2018

refer section 17(5) which reads as:
input tax credit shall not be available in respect of the following, namely:-

[a] motor vehicles and other conveyances except when they are used--

[i] for making the following taxable supplies, namely:-

[A] further supply of such vehicles or conveyances ; or

[B] transportation of passengers; or

[C] imparting training on driving, flying, navigating such vehicles or conveyances;

[ii] for transportation of goods;

So this section provides that you can claim ITC on Motor Vehicle when used for transportation of Goods.

1 Like

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 21 September 2018

if our business is different type ???

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 21 September 2018

Different type of business but that motor vehicle used for transportation of goods its eligible for ITC.

2 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 21 September 2018

The ITC on truck is available only when its used as accordingly the condition specified by the Mr. Rohit

2 Like

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 21 September 2018

Sir
Our company purchase Car for our employee .Bill in the name of company. Can we take itc on it ?????

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 21 September 2018

No not available @ Rajiv Ji

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 21 September 2018

But sir this is for transportation of passanger

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 21 September 2018

It's not called passenger, it's for own employees.

2 Like

subhagan sreerangam (7039 Points)
Replied 23 September 2018

good and correct nice explanation likes it

Chaitanya V Desai (Commercial Officer) (22 Points)
Replied 03 May 2019

if i took truck by hire purchase than which amount i took for credit full GST ?

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 03 May 2019

Rohit Tibrewal Student & Senior Accountant Different type of business but that motor vehicle used for transportation of goods its eligible for Different type of business but that motor vehicle used for transportation of goods its eligible for ITC.

Here , if my motor vehicle is used for transportation of goods then its a GTA. RIGHT?

and if im a GTA then also im not allowed to take itc for purchase of my vehicles.

Firstly As per 17 (5)

(a) motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except
when they are used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods
THeres no mentioning of transportation of goods for motor vehicles.