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

Section 17(5): No ITC for passenger cars used for employee commuting to aircraft maintenance business; treat tax as blocked expense Section 17(5) of the CGST Act bars input tax credit on motor vehicles for transport of persons with seating capacity up to 13, except where used for further supply of such vehicles, transportation of passengers, or imparting driving training. A passenger car used for daily commute to an aircraft maintenance business therefore falls within the blocked category and ITC cannot be claimed in the GSTR-3B. Do not include the tax on that car in the ITC claim lines (4A/4B/4C); treat the tax as blocked input tax and expense it rather than claiming credit.