TaxTMI 
TaxTMI 
TaxTMI 
ITC on motor vehicle
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....TC on motor vehicle<br> Query (Issue) Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 4-12-2021 Last Reply Date:- 13-12-2021 Goods and Services Tax - GST<br>Got 12 Replies<br>GST<br>Dear experts, I have one small clarification on ITC eligibility in the following. My client is a trader for supplying of goods to various locations in India through his own motor vehicles that was purchased in his....
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.... company name. Will he be eligible to claim ITC against the purchase of motor vehicle. Thanks on advance. Reply By Rajagopalan Ranganathan: The Reply: Sir, ITC of gst paid on motor vehicles used for transportation of goods is available. Reply By Shilpi Jain: The Reply: Why is there a doubt on this?Tthe moment it's a goods vehicle, credit is eligible Reply By THYAGARAJAN KALYANASUNDARAM....
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....: The Reply: Thank you so much for your reply. Reply By KASTURI SETHI: The Reply: I support the views of experts. I also add as under:- Before 1.2.19 Section 17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely :- "(a) motor vehicles and other conveyances e....
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....xcept when they are used-- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; After 1.2.19 (5) Notwithstanding anything contained in sub-section (1) of section 16 and su....
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....b-section (1) of section 18, input tax credit shall not be available in respect of the following, namely :- [(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- (A) further supply of such motor vehicles; or (B) transportation of ....
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....passengers; or (C) imparting training on driving such motor vehicles; If we compare the language of Section 17(5) (a) above, ITC on motor vehicle used for transportation of goods was allowed before 1.2.19 and is allowed even after 1.2.19. Earlier it was specifically mentioned in the exclusion clause and after 1.2.19 it is out of blocked credit. Reply By PAWAN KUMAR: The Reply: Dear sir, as p....
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....er my view, iTc not eligible since amended GST 17(5) with effect from 01.02.2019, inserted clause (a) and clause (aa), the entry which relates to transportation of goods have now been assigned to clause (aa). experts can please review and share their inputs. Reply By Shilpi Jain: The Reply: The blocking of credit under section 17(5)a is only with respect to vehicles for transportation of passeng....
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....ers. Thereby vehicles for transportation of goods, there is no blockage of credit. Reply By KASTURI SETHI: The Reply: Dear Sh.Pawan Kumar Ji, Pl. re-examine your views and if you are right, pl. discuss at length on this forum. What is, de facto, impact of above amendment ? With due regards to you. Reply By PAWAN KUMAR: The Reply: dear sir, Re-checked provisions, you are right sir, ITC is el....
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....igible for motor vehicles for transportation of goods. Reply By KASTURI SETHI: The Reply: Dear Sir, O.K. Sir. Thank you very much for your concurrence on the issue. Reply By MANISH SINHA: The Reply: Yes Vehicle used for Transportation of Inputs/ capital Goods/ FG in furthrance of Business is eligible for Credit. Reply By PAWAN KUMAR: The Reply: service and repairing, insurance of such mot....
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....or vehicles will be eligible for itc ?, experts plz also guide on the same. Reply By Ganeshan Kalyani: The Reply: Yes Sir it is eligible.<br> Discussion Forum - Knowledge Sharing ....