WHETHER ITC PAID ON INSURANCE PREMIUM.....ETC PAID ON PURCHASE OF CAR.

WHETHER

1) CGST AND SGST PAID ON INSURANCE PREMIUM PAID ON CAR,
2) CGST AND SGST PAID ON EXTEND WARRANTY OF CAR,
3) CGST AND SGST PAID ON ROAD SITE ASSISTANCE

CAN BE CLAIM AS INPUT TAX CREDIT BY A COMPANY.

PLEASE GUIDE ASAP
Replies (7)
1. 1st time insurance premium credit u can get coz u r capitalizing.
2 & 3 can not be taken as credit (blocked credit 17(5))
In section 17 (5) it is no where written that credit of 2 and 3 point is disallowed. Kindly elaborate
S. 17(5)(a) condition should be satisfied to claim the credit. If the motor vehicles and other conveyances used for any Purpose not mentioned, the credit can not be claimed. Hope it helps.
I purchased a new car in my personal name. I am proprietor of my business firm. Payment of car is made from business firm & is shown in balance sheet. car is used for business purposes.
Can I take ITC credit of GST paid in purchse invoice of car, insurance premium of car ?
Under which section of GST Act.
Please guide
What is the nature of Business?
Chemical Trading & Supply to Industrial Units
So, newly bought car is not being used in
1. Supply of vehicles or conveyances
2. Transportation of Passengers
3. Transportation of Goods
4. Imparting training on driving, flying, navigating

As per S. 17(5)(a), credit can be claimed only if ur motor vehicle used in above said purposes which is not in your case.
So, GST paid in purchase invoice of car, Insurance premium can not be claimed as Input credit.
However, u can capitalize the cost and claim depreciation on it as per Income Tax Act, 1961.

Hope it helps.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 14 November 2026
Article Assistant

Jitendra Agarwal & Associates

Bengaluru

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 14 November 2026
Articleship Assistant

B Thejas and Associates

Bengaluru

CA Foundation

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details