Blocked Input Tax Credit on motor vehicles limited to uses like further supply, passenger transport, or driving training. Section 17(5) CGST blocks Input Tax Credit on motor vehicles for carriage of persons with seating capacity up to thirteen, except where used for further supply of such vehicles, passenger transportation, or imparting driving training. Similar principles apply to vessels and aircraft-ITC is unrestricted for goods transport and conditional for passenger transport. Clause (ab) permits ITC on specified services (insurance, servicing, repair, leasing) where the underlying vehicle, vessel or aircraft qualifies for ITC or is the manufacturer's final product. CBIC clarifications govern demo vehicles, capitalization consequences, and insurer claim-settlement accounting for repair invoices.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Blocked Input Tax Credit on motor vehicles limited to uses like further supply, passenger transport, or driving training.
Section 17(5) CGST blocks Input Tax Credit on motor vehicles for carriage of persons with seating capacity up to thirteen, except where used for further supply of such vehicles, passenger transportation, or imparting driving training. Similar principles apply to vessels and aircraft-ITC is unrestricted for goods transport and conditional for passenger transport. Clause (ab) permits ITC on specified services (insurance, servicing, repair, leasing) where the underlying vehicle, vessel or aircraft qualifies for ITC or is the manufacturer's final product. CBIC clarifications govern demo vehicles, capitalization consequences, and insurer claim-settlement accounting for repair invoices.
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