BUYING A CAR INPUT INTO BUSINESS ENTITY REG, Goods and Services Tax - GST

[Vinay Badam]

Dear Sirs,

I am having a Business which is a Propieratory firm

Usually I buy a car in my personal name show them in books of business accounts claim depreciation

Now I am planning to buy a new car, After GST comes into force Can i take the GST paid on the car back as input or not

I have heard that we can claim GST paid on Electricity bills, Telephone bills and other Business expenses

Please clarify my Car query

Thanks in advance

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

If the car is used in the course of furtherance of your business you can avail the credit. If it is for personal use you cannot avail the credit this true under GST law also.

[MARIAPPAN GOVINDARAJAN]

You can take input tax credit on electricity bills, telephone bills and other business expenses if they are in the course or furtherance of your business.

[Himansu Sha]

Credit on vehicles is not allowed under section 17(5) of the gst act unless you are in the similar business.