Input credit of Heavy goods Vehicles

[CARajnikant Kalsariya]

Our client has unit for job work of dyeing printing on grey fabric.They purchase Heavy Goods Carriage vehicle (Tempo) for transportation of Goods from the unit to customer place and vice versa, Unit is eligible for taking input credit of Hevy Goods carriage Vehicle?

[SOWMYA CA]

ITC can be availed on purchase of Heavy goods carriage vehicle (tempo) for transportation of goods from the unit to customer place and vice versa. However cost incurred on general insurance and servicing, repair and maintenance of the motor vehicle is blocked under section 17(5)

[Amit Agrawal]

There is no bar in availing ITC u/s 17 (5) of the CGST Act against heavy goods carriage vehicle (tempo) when it is used for transportation of goods.

Furthermore, there is no bar in availing ITC u/s 17 (5) against 'services of general insurance, servicing, repair and maintenance' when these services are related to above-said 'heavy goods carriage vehicle (tempo) which is used for transportation of goods'.

[KASTURI SETHI]

There is substance in the views of Sh.Amit Agrawal Ji. I agree with his views.

AI Summary

Eligibility for Input Tax Credit on Heavy Goods Carriage for Transporting Goods: Section 17(5) Implications Explained. A client involved in dyeing and printing on grey fabric inquired about the eligibility for input tax credit (ITC) on purchasing a Heavy Goods Carriage vehicle for transporting goods. A respondent clarified that ITC is available for such vehicles used for transportation, but costs related to general insurance, servicing, repair, and maintenance are generally blocked under section 17(5) of the GST Act. Another respondent added that there is no restriction on availing ITC for these services if they relate to the vehicle used for goods transportation. A third participant agreed with this interpretation.