ITC ELIGIBILITY ON CAR REPAIR BILLS

[SAFETAB LIFESCIENCE]

Dear Experts,

Shall we take ITC on Company's car repair bills. The car is owned by company

We have pucca GST bill issued by repairer with our company GST numbers and

other required details for ITC.

[KASTURI SETHI]

You have all genuine docs but here is the question of admissibilty.Whether it is hit by Section 17(5) of CGST Act or not even after amedment w.e.f. from 1.2.19. Strings are attached for availment of ITC on repair of car. If ITC is not allowed on car/motor vehicle, it will not be allowed on repair of the same. You are to see whether the same is covered by Section 17(5)(a) (A)(B)(C) of CGST Act (exclusion clause). However, in my view ITC is not admissible.

[CASusheel Gupta]

Generally ITC is not allowed on car repair bill.

If ITC is for motor vehicle used for transportation of goods/passengers, ITC allowed

CA Susheel Gupta

9811004443

[SAFETAB LIFESCIENCE]

Dear Experts,

We received reply from two experts. We are not clear still. Ours is pharma company partnership firm and the car is used for pick up of staff including owners/partners. We do not know we are covered under u/s 175 (5) or allied sections. We are not aware.

Please clarify whether we are elegible for ITC on repair bills of company owned cars. We did not avail ITC on cars purchase value since no GST rules were there at that time of purchase of car.

[CASusheel Gupta]

ITC on repair bill, insurance of car used for staff/owner is not allowed.

CA Susheel Gupta

9811004443

[KASTURI SETHI]

Dear Querist,

Pl. peruse the legal definition/meaning of , "Passenger", "Passenger Car", "Passenger Vehicle" Can your employee be considered a passenger ? After this, things will be clear and you will be convinced.

I stick to my reply.

[Ganeshan Kalyani]

Input Tax Credit on car repair expense is not allowed.

[RAMASAMYSHANMUGAM SARAVANAN]

If vehicle ITC ineligible then all other expenses related to the vehicle like, maintenance, insurance etc- INELIGIBLE

AI Summary

Input Tax Credit on car repairs disallowed unless vehicle is used for transport of goods or passengers. ITC on repair, insurance and maintenance of company-owned cars is generally ineligible if the vehicle itself is excluded from credit under Section 17(5); only vehicles meeting the statutory exceptions for transport of goods or passenger transport services permit ITC, so routine staff/owner use typically precludes claiming ITC on repair bills.