TaxTMI 
TaxTMI 
itc of commercial vechile on delivery of goods
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....tc of commercial vechile on delivery of goods<br> Query (Issue) Started By: - FARIDUDDIN AHMAD Dated:- 28-4-2023 Last Reply Date:- 3-5-2023 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>tax payer is dealing in retail and wholesale of ready made garment. tax payer purchased commercial vehicle for delivery of goods on firms GSTIN and used it without charging any freight charges separately.....
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.... expenses of transportation of goods is included in sale price of goods. kindly clarify that tax payer is eligible to claim and utilize the ITC of commercial vehicle or not. Reply By Amit Agrawal: The Reply: With the understanding that you are referring to 'goods transport vehicle', ITC is available against such 'goods transport vehicle' to the taxpayer in given situation. Thes....
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....e are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Rajagopalan Ranganathan: The Reply: Sir, In my opinion, only vehicles for the transportation of persons not exceeding 13 including the driver are excluded from availing iTC of tax paid on such vehicle. In your case, it appears that the vehicle is used for the supply of goods. Hence y....
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....ou are eligible to avail of ITC provided you have capitalized the same in your books of account. Reply By Ganeshan Kalyani: The Reply: ITC is eligible. Reply By Padmanathan Kollengode: The Reply: I agree with experts. ITC is eligible for Goods Transport Vehicle regardless of the fact that you are not charging freight charges separately. Reply By Shilpi Jain: The Reply: Credit eligible. There....
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.... is no requirement that the vehicle has to be used for providing some services for which separate consideration is charged and GST to be charged on the same to be eligible for the credit. In the present case, the vehicle being used for taxable business itself is sufficient to take credit. Reply By Aditya Gondiker: The Reply: ITC eligible. Section 17(5)(a) blocks credit in relation to motor veh....
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....icles only where the same are used for "transportation of persons". Therefore, where the end use of such vehicle is for transportation of goods a registered person should be entitled to avail input tax credit.<br> Discussion Forum - Knowledge Sharing ....