Regarding input tax credit on truck purchase

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

 

Please Reply

 

Replies (11)
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.
if our business is different type ???
Different type of business but that motor vehicle used for transportation of goods its eligible for ITC.
The ITC on truck is available only when its used as accordingly the condition specified by the Mr. Rohit
Sir
Our company purchase Car for our employee .Bill in the name of company. Can we take itc on it ?????
No not available @ Rajiv Ji
But sir this is for transportation of passanger
It's not called passenger, it's for own employees.
good and correct nice explanation likes it

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

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.

and Secondly as per notification 

if GTA charges @ 5 % they cannot avail itc 

and if they  go for @ 12 % fwd charge , as per sec 17(5) they cannot avail itc for their motor vehicles.

PLEASE CORRECT ME IF IM WRONG

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