Input credit on Service Bill of vehicle

[Guest]

Sir, plz clarify whether GST input on service of vehicle (car) registeded ( non commercial) in name of company is allowed or not ?? If yes plz forward me evidence .

Thank you

[Rajagopalan Ranganathan]

Sir,

According to Section 17 (5) of CGST Act, 2017 "Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely :-

[(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely :-

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;

According to Section 17 (5) (ab) of the same Act, "services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) :

Provided that the input tax credit in respect of such services shall be available -

(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;

(ii) where received by a taxable person engaged -

(I) in the manufacture of such motor vehicles, vessels or aircraft; or

(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him."

Therefore input tax credit in respect og GST paid in respect of services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles is not available.

[Ganeshan Kalyani]

Itc on motor vehicle is not eligible.

[KASTURI SETHI]

I concur with the views of both experts.

[Himansu Sekhar]

No itc is allowable

AI Summary

ITC on GST disallowed for services related to non-commercial vehicles unless used for specified business activities per Section 17(5). A query was raised about the eligibility of input tax credit (ITC) on GST for services related to a non-commercial vehicle registered in a company's name. Responses referenced Section 17(5) of the CGST Act, 2017, which generally disallows ITC for motor vehicles used for personal transportation unless used for specific taxable supplies like further supply, passenger transport, or driving training. It was concluded that ITC is not available for services like insurance, repair, and maintenance related to such vehicles unless used in specified business activities. All respondents agreed that ITC is not allowable in this case.