ITC on motor vehicle

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

I have one small clarification on ITC eligibility in the following.

My client is a trader for supplying of goods to various locations in India through his own motor vehicles that was purchased in his company name. Will he be eligible to claim ITC against the purchase of motor vehicle.

Thanks on advance.

AI Summary

Input Tax Credit Available for Goods Transport Vehicles Under GST Act Section 17(5), Including Repair and Insurance Services A trader inquired about the eligibility of claiming Input Tax Credit (ITC) on motor vehicles used for transporting goods under the Goods and Services Tax (GST) framework. Several experts confirmed that ITC is available for motor vehicles used for goods transportation, as per Section 17(5) of the GST Act, both before and after the amendment on February 1, 2019. The amendment clarified that ITC is not blocked for vehicles used for transporting goods. Additionally, ITC is also applicable to services like repair and insurance related to such vehicles.