travelling expenses under GST

1. Motor vehicles & conveyances

ITC is not available for motor vehicles and conveyances.

For example, XYZ & Co. buys a car for their business. They cannot claim ITC on the same.

Exceptions to ITC on motor vehicles

ITC will be available when the vehicle is used for the following.

a) Supply of other vehicles or conveyances

If you are in the business of supplying cars then ITC will be available.

For example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess calculations). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST. Since he is a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14).

b) Transportation of passengers

If you are providing transportation of passengers then ITC will be allowed on the vehicle purchased.

For example, Happy Tours purchased a bus for inter-city transport of passengers. ITC is available.

c) Imparting training on driving, flying, navigating such vehicle or conveyances

A driving school purchases a car to give training to students. The school can claim ITC on the GST paid on the car.

d) Transportation of goods

ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another. However, this is concerning other transporters and not goods transport agencies (GTA).

yes .itc is not allowed for conveyance

i mean GSTIN of ur client is mentioned or not .. IF mentioned let the spice jet had filed the same in GSTR-1 .. Then it is automatically populated in GSTR-2

We can avail input i.e being autopopulated in gstr-2 i.e. only when the vendor has made the payment of tax & return has been filed for the same . if spice jet has not paid tax to govt we cannot avail the credit , So we have to insist vendor to pay taxes on time inorder to avail the credit

So we have to wait till the GSTR-1 is filed by him in order to avail the credit

The pleasure is mine ... U r welcome