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car repair and car insurance, Goods and Services Tax - GST

Issue Id: - 114042
Dated: 14-8-2018
By:- satbir singhwahi
car repair and car insurance

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whether itc on car repair and car insurance available to a business concern

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Showing Replies 1 to 14 of 14 Records

1 Dated: 14-8-2018
By:- Rajagopalan Ranganathan


According to Section 16 (1) of CGST Act, 2017 "every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

According to Section 17 (5) (a) of CGST Act, 2017 "Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-

(a) motor vehicles and other conveyances except when they are used––

(i) for making the following taxable supplies, namely:-

(A) further supply of such vehicles or conveyances ; or

(B) transportation of passengers; or

(C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods.

Therefore if the car is used in the course or furtherance of his business itc is available . Otherwise it is not available.

2 Dated: 14-8-2018
By:- satbir singhwahi

Thanks Sir

3 Dated: 14-8-2018
By:- Himansu Sekhar

Yes, the ITC is not allowed

4 Dated: 14-8-2018
By:- satbir singhwahi


pls give if any circular

5 Dated: 15-8-2018

The advice given by Shri Renganathan is sufficient.

6 Dated: 15-8-2018
By:- satbir singhwahi


Is there any circular recently that says car repair and car insurance not available.Pls guide.

7 Dated: 15-8-2018
By:- Rajagopalan Ranganathan


Circular will be issued only to clariffy any ambiguity arising out of legal provisions. Here the law is very clear and hence no circular is required to be issued. As far as my knowledge goes there is no circular issued by CBIC on this matter.

8 Dated: 18-8-2018
By:- Himansu Sekhar

If the car is for business purpose itc is available.I amend my view.

9 Dated: 21-8-2018
By:- Ganeshan Kalyani

In my view if the person is in the business of plying car then credit on the repair of car is eligible.

10 Dated: 28-8-2018
By:- Ramaswamy S

Credit is restricted as explained by Mr Rajagopalan.

Even if the car is used in the business, ITC is allowed only if it is used in the business of supplies of such vehicles (sale of cars) or for transportation of passengers (rent a cab) or for driver training.

For any other business it is not allowed



11 Dated: 28-8-2018
By:- Ganeshan Kalyani

The word used in the section 17(5) regarding motor vehicle is "in respect of" which means only motor vehicle and the expense of repair. If the work would have to "in relation to" then I agree the credit is not eligible.

12 Dated: 29-8-2018
By:- Ramaswamy S

Thank you Mr Ganeshan for the clarification.

If the repair and insurance service is paid by the business concern for business purpose it is allowed, If paid by the business concern for personal consumption not allowed in terms of Section 17(5) (g).



13 Dated: 7-9-2018
By:- alok saxena


How it clear that car use in person or Business work .once car use only pick & drop to resi to work place and rest time use in Business work and holiday and weekly off day use in personal work. than what status.

14 Dated: 7-9-2018
By:- Ramaswamy S

After the amendment in Section 17 of CGST Act effective 29th Aug 2018, no credit allowed on repair and insurance of car even if used for business with exception as specified under revised section 17(5).




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