ITC eligibility on motor vehicle purchased to provide Rental Services

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....TC eligibility on motor vehicle purchased to provide Rental Services<br>By: - Jahnavi<br>Goods and Services Tax - GST<br>Dated:- 2-5-2026<br><br>Respected Experts, I have purchased some motor vehicles(Car) and used it to provide renting services. Under this, I have made agreement with third party, where as per agreement, they are charged certain amount monthly and they can use it for whatever p....

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....urpose they wish to. My query is: 1. Is the Input Credit available to me on which I have purchased motor vehicle? or Is it a blocked credit under Section 17(5)? 2. Under which SAC should I report these services in Monthly returns? As far as my understanding, Under Section 17: (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, i....

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....nput tax credit shall not be available in respect of the following, namely:- 2[(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 passengers; or (C) impa....

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....rting training on navigating such vessels; or (D) imparting training on flying such aircraft; As per this, input credit should be eligible. However, my friend who is in same business has informed that he has received a notice saying, it doesn&#39;t fall under the definition of further supply and ITC on cars purchased is a blocked credit. It would be of great help, if experts and seniors c....

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....an shed light on this with relevant court judgements or any. Reply By Purushothaman Gopalan as = SAC code : 996601 - Rental Services of road vehicles including buses, coaches, cars, trucks and other motor vehicle with operator. Regarding the ITC eligibility need to examine the agreement. As per the general rule, ITC is not available on motor vehicles with an approved seating capacity of le....

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....ss than or equal to 13 persons (including the driver). &nbsp; Dated: 5-5-2026 =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....