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urgent doubt

17 September 2018

I have run a small agency.i want to purchase four wheller vehicle for official purpose.if I purchase it.i claim the amount in gst or not.the purchase vehicle register in agency name. Plz give me a solution.any one sir

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9 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 17 September 2018

As per section 17(5) of CGST Act, input tax credit will not be available in respect of motor vehicles and other conveyances, except when

such motor vehicles or other conveyances are supplied further, or

used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or

are used for transportation of goods.

Hence, if your firm does a business that falls under any of the categories mentioned above, it can claim the input tax credit.

Vinod Babu (24191 Points)
Replied 17 September 2018

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

Transportation of goods
Transportation of Goods/Passenger
Supply of other vehicles or conveyances

Hence you are using it for tranporting of goods , ITC can be taken.

Bathri Narayanan (208 Points)
Replied 17 September 2018

if claim or not sir.i have use the vehicle for transporting the goods .I have claim for my business gst number or not sir

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 17 September 2018

Are you having transportation business?

Vinod Babu (24191 Points)
Replied 17 September 2018

Yes you can claim...

Bathri Narayanan (208 Points)
Replied 17 September 2018

I am not trosportation business.i am oil agency but I purchase vehicle for transportation goods from one place to another place.if I claim or not

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 17 September 2018

Hi,

As said by Mr. Vinod, if you are in business of transport of goods, you can claim the credit of GST paid on purchase of vehicle to use to provide the output service.

But please note that input credit in the business transportation of goods is allowed only when you pay the GST @ 12% under forward charge.

If you do not pay and receiver pay GST @ 5% under reverse charge, input credit on vehicle puchased would not be allowed to you.

Thanks