ITC credit for GST paid on new car.

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....TC credit for GST paid on new car.<br> Query (Issue) Started By: - Kashinath Hegde Dated:- 4-10-2025 Last Reply Date:- 8-10-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>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)? Reply By Sada....

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....nand Bulbule: The Reply: Plz refer Section 17 of the CGST Act for blocked ITC: (5) Notwithstanding anything contained in&nbsp;sub-section (1) of section 16&nbsp;and&nbsp;sub-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 (....

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....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 passengers;&nbsp; (C) imparting training on driving such motor vehicles; I think your new car is covered by under Sub-clause (a) above. Hence you cannot claim ITC on such car as it does not fulfill the three specified exception....

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....s[supra]. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir,&nbsp; As per the Restricted provision of Section 17(5) of the CGST Act,&nbsp; ITC cannot be claimed on the rent for passenger cars with a seating capacity of less than 13 people, except when used for making outward taxable supply of the Same Category of goods or services or both or - As an Element of a taxable composite or mixed sup....

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....ply or - The Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force-vehicles used for Imparting motor driving or training skills Vehicles used for transportation of Passenger. In your case, it is for the use of the car for travelling from the Airport to the business place. This activity falls under the category o....

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....f approved seating capacity below 13 members. Hence, not eligible for ITC. Reply By KASTURI SETHI: The Reply: ITC is hit by Section 17 (5) of CGST Act.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; Reply By Shilpi Jain: The Reply: 17(5) restriction applies irrespective of the fact that you use the car for your business.<br> Discussion Forum - Knowledge Sharing ....