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

Input tax credit for heavy goods vehicle: purchase allowed; insurance and servicing credit is disputed. Purchase of a heavy goods carriage vehicle used for transporting goods qualifies for Input Tax Credit. Contributors agree on ITC eligibility for the vehicle acquisition but diverge on recurrent costs: one view treats general insurance, servicing, repair and maintenance as blocked under Section 17(5), while another view allows ITC on those services if they relate to a vehicle used for transportation of goods.