TMI BlogBlock Credit - Motor Vehicle [section 17(5)(a),(aa),(ab) of CGST Act]X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable in respect of the following, namely:- Clauses (a) Input tax credit on purchase of Motor Vehicle If motor vehicle purchase use for transportation of goods , input tax credit can availed without any restriction. If motor vehicles purchased for transportation for passenger, if approved seating capacity ( including driver ) is 13 or more, input tax credit can availed without any restriction. If motor vehicles purchased for transportation for passenger, if approved seating capacity ( including driver ) is 13 or less If motor vehicle use for making taxable supply Further supply of such motor vehicle like renting or lease services , automobile shop, showrooms, or manufacturing establishment Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... traveler (seating capacity of 15 persons for the transport of its employees within the factory premises. can Star car Pvt. Ltd. avail ITC on such purchases? In this case, Star car Pvt. Ltd. will be able to availed the ITC as tempo have sitting capacity more than 13 person . Example 2:- Kapil dairy uses tempo services for delivery of its milk product. in this case as supply of milk products is in course of business. Thus here ITC will be allowed as it is used for transportation of goods which is not covered in blocked credit under section 17(5) of CGST Act. Example 3:- Mr. Ramesh Tour Travel, purchase a car having capacity of 5 person for the Transportation of passenger, can be availed ITC or not. In this case, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truck general insurances which is used for transportation of goods. In this case, as per section 17(5)(ab) of CGST Act, notified specified services allowed for ITC, on which ITC claimed at the time of purchased according to section 17(5)() and (aa). therefore Jassi Roadline can availed ITC on the general insurances of truck, which used for the transportation of goods. Example 7:- Whether tax paid on repairs, maintenance and insurance of Motor Vehicles used for the purpose of business is eligible for ITC? [ refer FAQ Qus. 41 ] Ans. The ITC on repairs, maintenance and general insurance of those motor vehicles is blocked if the ITC is blocked under Section 17(5)(a) of the CGST Act 2017 . Motor Vehicles for transportation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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