I am a sole proprietor of firm M/s ABC and my frm is GST registered. I deal in taxable supply of goods @5% GST. Now, i have decided to purchase a truck (for transportation of the same goods) on LOAN . I am incurring GST on its cost as well on its insurance payment. So my queries is :
a. Can i avail ITC on the above purchase?
b. If yes, then in order to avail ITC in whose name i should take the loan under my name or under my firm's name?
Sole proprietor can claim Input Tax Credit on truck purchase; ensure loan is in firm's name per GST registration. A sole proprietor of a GST-registered firm inquired about availing Input Tax Credit (ITC) on a truck purchased on loan for business use, including GST on its cost and insurance. Responses confirmed ITC eligibility, advising to align the loan name with the GST registration certificate. While a sole proprietorship is not a separate legal entity, it was recommended to take the loan in the firm's name as per the GST certificate. The proprietor clarified that the trade name is the firm's name, while the legal name is personal, seeking guidance on the loan name. (AI Summary)
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