LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Used vehicke

Rahmathullah p (101 Points)

25 January 2021

Can ITC be purchased with a used commercial vehicle?

Reply
Follow
Share

2 Replies

Divyam Agarwal (Practicing Chartered Accountant) (959 Points)
Replied 25 January 2021

Your question is not clear.
Please come again.

Shivam RC (Student) (23683 Points)
Replied 26 January 2021

ITC stands for "INPUT TAX CREDIT".
You cannot purchase ITC. You have to claim ITC on your inward supplies ( inputs, input services and capital goods ).

As far as your question is concerned, You cannot claim ITC on Motor Vehicles having approved seating capacity of 13 persons ( including the driver ) as it is a BLOCKED Credit under Section 17(5) of the CGST Act 2017. Moreover if the vehicle is being used for "transportation of goods", then you can claim ITC on Motor Vehicle ( Truck ) provided all the FOUR Conditions as laid down U/s 16(2) of the CGST Act 2017 has been satisfied.