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?

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.