ITC CLAIMED ON BIKE

[baijukumar jha]

DEAR SIR

I AM PROPRIETOR OF READYMADE GARMENT CO.

I HAVE PURCHASE A BIKE FOR COMPANY PURPOSE .

CAN I CLAMED ITC ?

AI Summary

Garment Company Denied ITC on Bike Purchase for Business Use Due to CGST Act Section 17(5) Restrictions A proprietor of a garment company inquired about claiming Input Tax Credit (ITC) on a bike purchased for company use under the Goods and Services Tax (GST) framework. Respondents clarified that ITC is not permissible due to Section 17(5) of the Central Goods and Services Tax (CGST) Act, which restricts credit for motor vehicles used for passenger transportation. Despite the bike being listed on GSTR-2A, it does not qualify as a motor vehicle eligible for ITC under the CGST Act, as bikes are considered passenger vehicles and not for goods transportation.