TaxTMI 
TaxTMI 
ONE CONSTRUCTION COMPANY PURCHASES LORRIES FOR SHIFTING/PURCHASING SAND, BRICKS & OTHERS FOR FURTHERANCE OF BUSINESS. MY QUESTION IS WHETHER ITC ON PURCHASE OF LORRY ALLOWED, IF YES, IS THERE ANY NOTIFICATION? MOREOVER, ITC ON SPARES, SERVICES FOR THE SAID LORRY ALLOWED? PLEASE CLARIFY
ITC ON VEHICLE MAINTENANCE
10 Feb 2021 
5 Replies 
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Input tax credit on lorries and related repairs now allowable following removal of the 'other conveyances' block, subject to reversal rules.
Removal of the phrase "other conveyances" from the blocked credits in section 17(5) means lorry acquisitions used for goods transportation are no longer expressly disallowed; accordingly, ITC on spares, repairs, servicing and insurance for such lorries is permissible, subject to the continuing passenger-vehicle exclusions and operative compliance steps including carrying out credit reversals under the Rule 42 mechanism where applicable. (AI Summary)
Removal of the phrase "other conveyances" from the blocked credits in section 17(5) means lorry acquisitions used for goods transportation are no longer expressly disallowed; accordingly, ITC on spares, repairs, servicing and insurance for such lorries is permissible, subject to the continuing passenger-vehicle exclusions and operative compliance steps including carrying out credit reversals under the Rule 42 mechanism where applicable. (AI Summary)