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

Input tax credit on rented vehicles: debate over eligibility for GST credit when trucks are hired for goods transport.
Whether GST input tax credit is available on rent paid for trucks used to dispatch goods is contested: Section 17 excludes credit for motor vehicles but excepts use for transportation of goods. Practitioners differ on whether that exclusion applies only to purchase or also to hired vehicles, and whether the transportation exception is limited to specified services or applies to any business transporting goods.