itc on purchase commercial vehicle

[baijukumar jha]

Dear Sir

i am sole proprietor of Readymade Garment job work company, i am registered in GST

i want to purchase Commercial Vehicle for Goods supply one company to another company

could i claim ITC on purchase vehicle.

AI Summary

Sole proprietor can claim Input Tax Credit on commercial vehicle for goods transport under Section 17(5) of CGST Act. A sole proprietor of a garment job work company inquired about claiming Input Tax Credit (ITC) on the purchase of a commercial vehicle for transporting goods. Respondents clarified that under Section 17(5) of the CGST Act, 2017, ITC is not available for motor vehicles designed for passenger transport with a seating capacity of up to thirteen persons. However, since the vehicle is intended for goods transportation, ITC can be claimed, provided it is not used for exempt supplies. The consensus among the replies was that ITC is allowed for vehicles used for transporting goods.