BUYING A CAR INPUT INTO BUSINESS ENTITY REG

[Asked by Guest]

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

[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.

[DR.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 Sekhar]

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

AI Summary

Input tax credit on vehicles is restricted and disallowed unless used in a similar business.
If a motor vehicle is genuinely used in the course of a proprietorship business, input tax credit on GST paid can be availed; personal use disallows credit. Utility and overhead GST (electricity, telephone) is claimable when in the course of business. Vehicles are excluded from input tax credit under section 17(5) unless the taxpayer is in a similar business supplying or hiring such vehicles.