itc of commercial vechile on delivery of goods

[FARIDUDDIN AHMAD]

tax payer is dealing in retail and wholesale of ready made garment. tax payer purchased commercial vehicle for delivery of goods on firms GSTIN and used it without charging any freight charges separately. expenses of transportation of goods is included in sale price of goods. kindly clarify that tax payer is eligible to claim and utilize the ITC of commercial vehicle or not.

AI Summary

Taxpayer Can Claim Input Tax Credit on Commercial Vehicle Used for Goods Delivery Under Section 16. A taxpayer involved in retail and wholesale of garments inquired about the eligibility to claim Input Tax Credit (ITC) on a commercial vehicle used for delivering goods without charging separate freight fees. Multiple respondents confirmed that ITC is eligible for a goods transport vehicle, as it is used for business purposes and not for transporting persons. The consensus was that the inclusion of transportation costs in the sale price does not affect ITC eligibility, and the vehicle must be capitalized in the taxpayer's accounts to claim the credit.