ITC credit eligibility on commercial vehicles

[VEKIT SHETTY]

I run a Multistate cooperative society in which I'm purchasing commercial vehicle with ITC of 8 lakhs where I'll be advertising my institution loans and interest rates

So will I be eligible for ITC on this vehicle purchase?

AI Summary

Eligibility of Input Tax Credit for Cooperative Society's Vehicle Purchase Discussed under CGST Act Sections 17(2), 17(4), and 17(5). A multistate cooperative society inquired about the eligibility for Input Tax Credit (ITC) on a commercial vehicle purchase intended for advertising. Respondents discussed the applicability of Section 17(5) of the CGST Act, which restricts ITC on passenger vehicles with less than 13 seats unless used for specific purposes like transport services or driver training. They also highlighted the need for apportionment of credit under Section 17(2) and the potential application of Rule 42/43 for credit reversal due to personal use. If the vehicle is capitalized and used for business, ITC may be available, with possible restrictions under Section 17(4).