TaxTMI 
TaxTMI 
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.
itc of commercial vechile on delivery of goods
28 Apr 2023 
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Input tax credit on goods transport vehicles allowed where vehicle is used for delivery of goods and capitalised in books.
ITC is available for a vehicle whose end use is the transportation of goods; the passenger-transport exclusion does not apply. The vehicle should be capitalised in the books and used in the course of taxable supplies. There is no requirement to invoice freight separately for eligibility to claim the credit. (AI Summary)
ITC is available for a vehicle whose end use is the transportation of goods; the passenger-transport exclusion does not apply. The vehicle should be capitalised in the books and used in the course of taxable supplies. There is no requirement to invoice freight separately for eligibility to claim the credit. (AI Summary)