TaxTMI 
TaxTMI 
DEAR SIR
I AM PROPRIETOR OF READYMADE GARMENT CO.
I HAVE PURCHASE A BIKE FOR COMPANY PURPOSE .
CAN I CLAMED ITC ?
ITC CLAIMED ON BIKE
18 Jan 2020 
4 Replies 
34252 Views Asked by
Input tax credit on motor vehicles: motorcycles bought for general business use are generally ineligible under GST restrictions.
The proprietor's query whether ITC may be claimed on a motorcycle purchased for business use is answered by reference to the GST statutory exclusion for motor vehicles, which renders motorcycles used for passenger transport ineligible for ITC. Commentators note an exception when a vehicle is exclusively used for transporting goods, but the prevailing advice is that a standard business motorcycle does not qualify for credit even if the invoice appears in returns. (AI Summary)
The proprietor's query whether ITC may be claimed on a motorcycle purchased for business use is answered by reference to the GST statutory exclusion for motor vehicles, which renders motorcycles used for passenger transport ineligible for ITC. Commentators note an exception when a vehicle is exclusively used for transporting goods, but the prevailing advice is that a standard business motorcycle does not qualify for credit even if the invoice appears in returns. (AI Summary)