Share:   Share on facebook   Share on twitter   Share on linkedin

        Home        
 
Blank
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

ITC on motor vehicle, Goods and Services Tax - GST

Issue Id: - 117677
Dated: 4-12-2021
By:- THYAGARAJAN KALYANASUNDARAM
ITC on motor vehicle

  • Contents

Dear experts,

I have one small clarification on ITC eligibility in the following.

My client is a trader for supplying of goods to various locations in India through his own motor vehicles that was purchased in his company name. Will he be eligible to claim ITC against the purchase of motor vehicle.

Thanks on advance.

Post Reply

Posts / Replies

Showing Replies 1 to 12 of 12 Records

1 Dated: 4-12-2021
By:- Rajagopalan Ranganathan

Sir,

ITC of gst paid on motor vehicles used for transportation of goods is available.


2 Dated: 4-12-2021
By:- Shilpi Jain

Why is there a doubt on this?Tthe moment it's a goods vehicle, credit is eligible


3 Dated: 4-12-2021
By:- THYAGARAJAN KALYANASUNDARAM

Thank you so much for your reply.


4 Dated: 4-12-2021
By:- KASTURI SETHI

I support the views of experts. I also add as under:-

Before 1.2.19

Section 17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (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;

After 1.2.19

(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely :-

[(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;

If we compare the language of Section 17(5) (a) above, ITC on motor vehicle used for transportation of goods was allowed before 1.2.19 and is allowed even after 1.2.19. Earlier it was specifically mentioned in the exclusion clause and after 1.2.19 it is out of blocked credit.


5 Dated: 6-12-2021
By:- PAWAN KUMAR

Dear sir,

as per my view, iTc not eligible since amended GST 17(5) with effect from 01.02.2019, inserted clause (a) and clause (aa), the entry which relates to transportation of goods have now been assigned to clause (aa). experts can please review and share their inputs.


6 Dated: 6-12-2021
By:- Shilpi Jain

The blocking of credit under section 17(5)a is only with respect to vehicles for transportation of passengers. Thereby vehicles for transportation of goods, there is no blockage of credit.


7 Dated: 7-12-2021
By:- KASTURI SETHI

Dear Sh.Pawan Kumar Ji,

Pl. re-examine your views and if you are right, pl. discuss at length on this forum. What is, de facto, impact of above amendment ? With due regards to you.


8 Dated: 7-12-2021
By:- PAWAN KUMAR

dear sir,

Re-checked provisions, you are right sir, ITC is eligible for motor vehicles for transportation of goods.


9 Dated: 7-12-2021
By:- KASTURI SETHI

Dear Sir,

O.K. Sir. Thank you very much for your concurrence on the issue.


10 Dated: 8-12-2021
By:- MANISH SINHA

Yes Vehicle used for Transportation of Inputs/ capital Goods/ FG in furthrance of Business is eligible for Credit.


11 Dated: 12-12-2021
By:- PAWAN KUMAR

service and repairing, insurance of such motor vehicles will be eligible for itc ?, experts plz also guide on the same.


12 Dated: 13-12-2021
By:- Ganeshan Kalyani

Yes Sir it is eligible.


1

Post Reply