ITC ON MOTOR VECHILE MAINTENANCE EXPENSES

[Bhuvaneswaran s]

Dear Experts,

Please advice whether Input tax credit on maintenance charges (like Insurance for the vehicle, replacement of spares, repairs etc.,) in respect of own Lorries used to carry goods produced at the factory is eligible.

[Ganeshan Kalyani]

ITC on repairs is eligible in this case.

[KASTURI SETHI]

Yes. Eligible these being revenue expenditure.

AI Summary

Input tax credit eligibility for motor vehicle maintenance expenses affirmed as creditable under GST for business transport use.
Expenses for insurance, replacement spares and repairs of company-owned lorries used to carry factory goods are characterised as revenue expenditure and treated as eligible Input Tax Credit under GST, being ordinary business costs integral to transport supporting production.