Sir
Please confirm if ITC is allowed on Car repair expenses like change of tyres, change of battery etc when the car is registered in name of company and supplier and receiver are both registered in GST. Is it allowed on normal repair/maintenance also when Car is sent to gurage for change of Oil, filters etc
2---Is ITC allowed on Diwali gift articles like Toaster, Mixi, sweet boxes etc given to customers as sales promotion.
D K Aggarwal
Input Tax Credit Not Allowed for Car Repairs and Diwali Gifts, Section 17(5) GST Act Discussed A forum discussion addressed whether Input Tax Credit (ITC) under GST is permissible for car repair expenses and Diwali gifts. The consensus among participants was that ITC is not allowed for both scenarios. For car repairs, it was argued that since motor vehicles are generally excluded from ITC unless used for specific taxable supplies, related expenses are ineligible. Similarly, ITC is not applicable for gifts given as sales promotions, as they are provided without consideration. Some participants debated the interpretation of Section 17(5) of the GST Act, but the prevailing view upheld the exclusion of ITC for these cases. (AI Summary)
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