purchase of car - used to carry working staff - eligible for input

[giri gattupalli]

respected sir,

one of my clint purchased a car for purpose of transporting his staff from one service centre to another in all over state of andhrapradesh ...whether this car is eligible for input or not

please discuss.

thank you

AI Summary

Client Ineligible for Input Tax Credit on Car Purchase Under Section 17(5)(a) of CGST Act 2017 A client purchased a car to transport staff between service centers in Andhra Pradesh and inquired about eligibility for Input Tax Credit (ITC) under GST. According to Section 17(5)(a) of the CGST Act, 2017, ITC is not available for motor vehicles used for personal transportation unless they are used for specific taxable supplies. Experts in the forum agreed that the client is not eligible for ITC for the car, as it does not meet the exceptions outlined in the Act. The discussion also noted that ITC could be available if transportation is legally obligatory for the employer.