car repair and car insurance

[satbir singhwahi]

whether itc on car repair and car insurance available to a business concern

AI Summary

Businesses Face ITC Restrictions on Car Repairs and Insurance Under GST; Section 17(5)(a) Limits Claims A discussion on a forum addressed whether input tax credit (ITC) on car repair and insurance is available to businesses under the Goods and Services Tax (GST) framework. According to Section 16(1) of the CGST Act, businesses can claim ITC for expenses incurred in the furtherance of business. However, Section 17(5)(a) restricts ITC on motor vehicles unless used for specific purposes like transportation of goods or passengers. Contributors clarified that ITC is generally not available for personal use or non-specified business activities. Amendments effective from August 2018 further restricted ITC on car repairs and insurance.