TaxTMI 
TaxTMI 
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)?
ITC credit for GST paid on new car.
04 Oct 2025 
4 Replies 
2363 Views Asked by
Input tax credit restriction for passenger motor vehicles bars claiming ITC for business-use cars used for commute.
Section 17(5) precludes input tax credit on motor vehicles with seating capacity of not more than thirteen persons except where used for further supply of such vehicles, transportation of passengers, or imparting driving training, and carve-outs exist for vehicles forming part of a taxable composite or mixed supply or where Government notification makes the service an employer-obligatory benefit; a passenger car used for daily commute between airport and business premises does not meet these exceptions and is therefore not eligible for ITC. (AI Summary)
Section 17(5) precludes input tax credit on motor vehicles with seating capacity of not more than thirteen persons except where used for further supply of such vehicles, transportation of passengers, or imparting driving training, and carve-outs exist for vehicles forming part of a taxable composite or mixed supply or where Government notification makes the service an employer-obligatory benefit; a passenger car used for daily commute between airport and business premises does not meet these exceptions and is therefore not eligible for ITC. (AI Summary)