| Question And Answer | |
|---|---|
| Subject: | Input tax credit of GST on the car taken on lease |
| Category: | GST |
| Querist: | prakash |
| Answered by: | Advocate C.B.Thakar |
| Tags: | Input tax credit of GST on the car taken on lease, ITC |
| Date: | February 25, 2024 |
Assessee is an individual engaged in business of trading and registered under GST , the has taken the High Value Car on lease for 10 years , whether he can claim the credit of GST paid on lease rentals .
Section 17(5)(a) of CGST Act reads as under:
“(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:-
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) imparting training on driving such motor vehicles;”
Thus, ITC on passenger motor vehicles is blocked except in certain given circumstances. Since your case does not appear to fit in said exceptional circumstances, no ITC will be eligible.