ITC ON COMMERCIAL VEHICLE PURCHASED ON LOAN

[Asked by Guest]

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?

AI Summary

Input Tax Credit on commercial vehicle allowed where business use and invoices match the registered person claiming credit.
Claiming Input Tax Credit on a commercial vehicle and related insurance is allowed when the vehicle is used for the furtherance of the taxable business, provided the tax invoice and supporting documents are in the name of the registered person claiming ITC. For a sole proprietor, the proprietor and firm constitute the same taxable person, so the loan may be in either name but documents should match the name on the GST registration to support the claim.