TaxTMI 
TaxTMI 
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?
Input credit of Heavy goods Vehicles
09 Feb 2022 
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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. (AI Summary)
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. (AI Summary)