08 Oct

Is the credit of GST paid at the time of car purchase is allowable

Is the credit of GST paid at the time of car purchase is allowable?

Getting a car is everyone's dream and you have to pay GST even when buying a new car

Now if there is an expensive car, GST also goes to a few lakhs.

In this case, most car dealers when buying a car say that if you have a GST number, you can take this credit of gst paid.

For more information and authenticity, my customers call me and ask for the right information

So the following information is useful for those who want to buy such a car and then you can decide whether you can take paid GST credit while buying the car?

Pursuant to Section 17 (5) of the CGST Act, the input tax credit will not be available in respect of motor vehicles and other vehicles, except:

A) Supply of other vehicles or vehicles

B) Passenger transport

c) Training in driving, flying, on such vehicle or transport

D) Transportation of goods

So, if your firm does business in any of the categories mentioned above, it can claim an input tax credit.

Remember, the input tax credit of GST paid on the purchase of such capital goods and the depreciation under the Income-tax Act 1961 will not be combined. You can either claim the input tax credit of GST or deduct it under the Income Tax Act 1961.

So my decision is that if you don't have the above business, you can't claim ITC.


Find the Solution That Best Fits Your Business