ITC credit for GST paid on new car.

[Kashinath Hegde]

I have bought a new car to use in my business (Aircraft maintenance service) for daily commute. I have GST invoice. Can I claim ITC while filling GSTR-3B? If yes how to proceed in item 4(A),4(B),4(C)?

AI Summary

ITC denied for privately used new cars for business commute; treat purchase as blocked input, exclude from GSTR-3B A statutory provision bars input tax credit on motor vehicles for transporting persons with seating capacity up to thirteen (including the driver) except where they are further supplied, used for passenger transport, or for imparting driving training. A privately used new car acquired for business commute therefore does not qualify for ITC and should not be claimed in GSTR-3B (items for eligible input tax credit). Treat the purchase as a blocked input; do not include it under 4(A), 4(B) or 4(C) for claiming credit.