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

Input tax credit on motor vehicles now limited by amendment; eligibility confined to specific uses and subject to tax and documentation requirements.
Whether ITC is admissible on purchase of a passenger motor vehicle used to deliver goods hinges on Section 17(5) CGST: ITC was previously claimed where vehicles transported goods, with reliance on Motor Vehicles Act definitions and on meeting GST payment and documentary requirements, but a subsequent amendment restricts ITC to limited uses (such as further supply of vehicles, passenger transportation or driving training), and claimants must also consider income tax capitalization and depreciation consequences and regulatory permit requirements under motor vehicle law.