GST credit in case of Truck taken on rent

[CABIJENDERKUMAR BANSAL]

Dear Sir,

Please clarify can be take GST credit in case any mfg. co. has taken Truck on rent for dispatch of goods from its factory to customer premises.

in section 17, credit is denied for Motor car and other conveyances except few usages:- i.e. if used for ''transportation of Goods'' then whether it will be allowed.

Then i want to confirm that whether this clause is applicable only for GTA or for any business usage. Please confirm.

Thanks,

CA Gorav Goyal

[Ganeshan Kalyani]

Credit is not eligible on purchase of motor vehicle. But if you hire motor vehicle then the credit is eligible of the GST paid on the rent paid.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani, Sir. I further add that this clause is not applicable for "any other business usage".

[CABIJENDERKUMAR BANSAL]

Ganeshan Ji/Kasturi Ji,

In section 17, it is nowhere mentioned that it should be for purchase of motor vehicle.

Then on which section/rule , we can derive this interpretation.

As we are taking CAR and truck on rent, so why this credit should be allowed and why not.

Please clarify.

[KIRTIKUMAR PUROHIT]

Rent for dispatch of goods from its factory to customer premises; In My view, No Input Tax Credit available on Outward Supply.

AI Summary

GST Credit Claim Debate: Renting Trucks for Goods Transport from Factory to Customers-Clarification on Input Tax Credit Rules. A discussion on a forum addressed whether a manufacturing company can claim GST credit for renting trucks to transport goods from its factory to customer premises. One participant clarified that GST credit is not available for purchasing motor vehicles, but it is eligible for rented vehicles. Another agreed, specifying that this exception does not apply to all business uses. A further query questioned the basis for this interpretation, seeking clarification on applicable sections or rules. The final response indicated that no Input Tax Credit is available for outward supply in this context.