Input tax credit

[DK AGGARWAL]

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

AI Summary

Input tax credit on motor vehicle repairs: eligibility disputed, while credits for free promotional goods are not allowed.
The document presents a dispute on ITC entitlement: one position denies ITC for motor vehicles and related services by treating the vehicle exclusion as preclusive even for repairs, while another position allows ITC on repair and maintenance services when vehicles are used in furtherance of business because the exclusion concerns the goods themselves. Separately, ITC on free promotional goods is regarded as ineligible because those supplies lack consideration.