BUYING A CAR INPUT INTO BUSINESS ENTITY REG

[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

AI Summary

Business Owner Seeks GST Input Credit on Car; Section 17(5) Limits Credit to Specific Business Activities Only. A business owner inquired about claiming GST input credit on a car purchased for their proprietorship after the implementation of GST. They typically buy cars in their personal name and claim depreciation in business accounts. Responses clarified that GST input credit on a vehicle is only permissible if the car is used for business purposes. However, credit is generally not allowed for vehicles unless the business involves similar activities, as per section 17(5) of the GST Act. Input credit on electricity and telephone bills is allowable if related to business operations.