car repair expences - ITC availability

[satbir singhwahi]

Sir

Kindly guide whether car repair expences, ITC , is eligible..

[DR.MARIAPPAN GOVINDARAJAN]

It is not eligible.

[KASTURI SETHI]

Dear Querist,. I support the view of Sh.Mariappan Govindarajan Sir. You are well conversant in this field .So also read carefully conditions or you may say buts and ifs. What you want you may find inherent in ITC rules. In a routine way it is disallowed.

[DR.MARIAPPAN GOVINDARAJAN]

Sri Satbir raised many a query in this forum which is helpful for me in analyzing and interpreting many provisions of law. However being fellow member of Chartered Accountant he is to guide us more.

[Ganeshan Kalyani]

Sir, input tax credit on motor car is disallowed. However, repair to motor car is not mentioned in the disallawance clause. One can say that under GST, input tax credit on input used in course or furtherance of business is allowed subject to disallowance list. But it is logical to understand that when input tax credit on motor car is disallowed then repair to motor is also disallowed. Thanks.

[KASTURI SETHI]

In my view, if your motor vehicle is covered under Section 17 (5)(i)-(A), (B),(C) & (ii) of the CGST Act,2017, then repair will also be eligible for ITC.

[Ganeshan Kalyani]

Input tax credit on repair to motor vehicle may be l subjected to audit.

[KASTURI SETHI]

Dear Sir,

Every kind of supply is subject to audit.

[subramanian vijayakumar]

I agree with the views of mr Ganesan sir

[Ganeshan Kalyani]

Thanks Sri Subramanian Sir.

AI Summary

Input tax credit on motor vehicle repairs may be disallowed; eligibility depends on statutory exception classification and audit review. ITC on motor vehicles is generally disallowed; repairs are not explicitly listed but are usually treated as blocked where the vehicle is ineligible. If a vehicle falls within statutory exception categories permitting ITC for specified uses, GST on repairs attributable to that eligible use may be claimed. Claims are subject to audit and require documentation of the vehicle's purpose and classification to substantiate entitlement.