ITC ON MOTOR VEHICLE INSURANCE

[Asked by Guest]

Dear Experts,

I have a firm named as 'xyz solutions' (trade name). The firm has GST registration and I am the sole proprietor of this firm (legal name = my name).

I have a car having commercial registration with taxi passing. The vehicle is being used for public transport. Here the vehicle is registered under my name.

And here is my question, "would i be able to claim the ITC on GST amount on buying/renewal of the motor vehicle insurance policy?"

Awaiting response, Thanks...

AI Summary

Input tax credit on motor vehicle insurance denied except when vehicle is used in the taxpayer's passenger transport business.
ITC on motor vehicle insurance is generally disallowed under the GST exclusion for motor vehicles, but an exception applies where the vehicle is used for passenger transport as the taxpayer's business. Contributors differ in view: ITC is available if passenger transport is the nature of the business and the vehicle is used accordingly; where vehicle receipts are treated as other income or passenger transport is incidental, admissibility of credit is doubtful. Companies that treat vehicles as company assets may claim ITC on insurance and maintenance invoices.