ITC ON PURCHASE MOTOR VEHICLE (MARUTI SWIFT)

[aman chourasia]

Hi Sir, I have a query, i am a electronics retailer who sales LED TV and other goods to customer,i want to buy a maruti swift car (motor vehicle) for transportation of LED TV LG and SAMSUNG TV to customer residence as free delivery along with customer/passenger,so i want to know am i eligible to claim ITC on purchase of motor vehicle? AS I HAVE READ IN GST LAW THAT ITC IS AVAILABLE FOR 'TRANSPORTATION OF GOODS' HERE DO NOTE I AM NOT USING TRANSPORT VEHICLE ITS A PASSENGER VEHICLE 'MARUTI SWIFT' AND AS MOTOR VEHICLE IN GST HAS SAME MEANING MENTIONED IN MOTOR VEHICLE ACT 1988,SO I THINK I CAN USE IT TO TRANSPORT GOODS AND CAN ALSO AVAIL ITC ON BUYING A NEW MOTOR VEHICLE.I WILL NOT BE USING THE VEHICLE FOR PERSONAL USE,IF ITS NO, THEN KINDLY GIVE A VALID REASON.

AI Summary

Retailer Denied ITC on Maruti Swift Purchase for Goods Transport; Section 17(5) of CGST Act Cited An electronics retailer inquired about claiming Input Tax Credit (ITC) on purchasing a Maruti Swift for delivering goods. The discussion centered around whether a passenger vehicle qualifies for ITC under the GST law, which allows ITC for vehicles used in transporting goods. Participants referenced Section 17(5) of the CGST Act, 2017, and the Motor Vehicles Act, 1988, debating the necessity of commercial registration. They concluded that ITC is not allowed for passenger vehicles like the Maruti Swift unless used for specified purposes, such as passenger transport or further supply, as per the amended law effective February 1, 2019.