TaxTMI 
TaxTMI 
CAN AVAIL ITC ON PURCHASE OF NEW VEHCILE,FOR FY 24-25 DISCHARGE THE LIABILITY IN 5 IN RCM AND 5 IN FCM
GST ON TRANSPORT SAC 9967 CAN AVAIL ITC ON PURCHASE OF NEW VEHCILE
09 Jan 2026 
9 Replies 
617 Views Asked by
GST on transport services: ITC entitlement depends on SAC 9967 classification and 5%/RCM payment conditions.
The issue concerns claim of input tax credit on a new vehicle used for services billed under SAC-9967 (Supporting services in transport). Contributors note conflicting views, but authoritative replies state ITC is available only in the Goods Transport Agency context, not for other transport operations; payment of tax at the 5% rate for GTA services precludes ITC; tax paid under the reverse charge mechanism does not create supplier credit; and ITC is allowable only if input tax on goods and services used in supplying the service has not already been taken. (AI Summary)
The issue concerns claim of input tax credit on a new vehicle used for services billed under SAC-9967 (Supporting services in transport). Contributors note conflicting views, but authoritative replies state ITC is available only in the Goods Transport Agency context, not for other transport operations; payment of tax at the 5% rate for GTA services precludes ITC; tax paid under the reverse charge mechanism does not create supplier credit; and ITC is allowable only if input tax on goods and services used in supplying the service has not already been taken. (AI Summary)