Buy from GSA Advantage!®—online shopping and ordering … Maharashtra AAR in the case of Chowgule Industries Private Limited, Resolve your GST queries from national level experts on GST free of cost, GST Compliance Calendar for the month of February, 2021, Union Budget , 2021: Amendment in GST Act(s) – At a Glance, Union Budget 2021: Direct Tax Proposals at a glance, Changes in GST law applicable from January 1, 2021 we should know, Services subject to reverse charge mechanism under GST Law : At a glance, All about reverse charge mechanism (RCM) under GST, GSTR-9 Annual Return: 10 key points you should know, 15 points to be taken care while conducting GST Audit, Can we avail ITC of CGST and SGST of other State, where we are not registered, ITC on Hotel Accommodation/Stay services under GST, GST: Lift is immoveable property – No ITC can be availed: AAAR [Read Order], GST Registration: When required and how to obtain, All about GST on sale of old and used motor vehicles, How to discharge reverse charge liability of earlier years now: Can ITC be availed thereon, All about GST under RCM on Legal Services provided by Advocates, Concept of Aggregate turnover and its impact on GST Registration, GST under Reverse Charge Mechanism on Renting of Motor Vehicles, Motor vehicles for transportation of persons having approved seating capacity of not more than 13 persons (including the driver) including leasing, renting or hiring thereof. This is usually around 10% of the total price. Motorex only act as a Marketing Broker and Agent to Vehicle Dealerships, Owners and other Brokers, and therefore operates within the general jurisdiction and prerequisites as stipulated by them. Such ITC could be availed by a person if the motor vehicles are used for- a. further supply of such vehicles; Finally in the CGST Amendment Act, 2018 which is applicable from 1st February 2019 has addressed this issue and considering the lieu benefits of the taxpayers has almost resolved all the related issues in this concern. dear sir, vehicles purchased by travel co & cess paid by the co can be claimed as refund, Dear Sir, my question is If a travel company purchase some vehicle and Cess paid on that vehicles can be claimed for refund, Is ITC allowed on ITC of GST paid on purchase of motor vehicles for supplying rent-a-cab service not admissible in terms of section 17(5)(b)(i) of the GST Act . Prashanth Tapse of Mehta Equities gives 9/10 rating to Budget 2021; L&T, SBI, ITC among top 5 bets for 2021 On a close above 14,300, traders can expect a … This video will describe you that when and how you can take credit on purchase, repair or insurance of motor vehicle. Budget 2021: GST Audit by professionals scrapped? However for rest of the passenger transport vehicle like Cars, Motor cycle etc, ITC is not admissible except in situations listed out in Section 17(5) of the CGST Act which are … The CCA rate for passenger vehicles is 30%, and the half-year rule applies, so the CCA for the first year is only 15% … 2.Transportation of passengers. When input tax credit for purchase and maintenance of the motor vehicle will be available in GST. 2. If I Purchase new Vehicle for the expansion of my business whether I can claim ITC cost of vehicle is 15.50 and GST is 3.05. Thus one can avail ITC on repair/spare parts. ITC of GST for purchase of motor vehicles in business other than that of provider of goods and/or passenger transport service. Hi Sharon, There are special and strict rules for claiming input tax credits on vehicles. E.g: ITC on repair charges charged by service dealers on free services given to consumers will be admissible to the car manufacturer. Take a look at my article on How to Claim Input Tax Credits Relating to Business Use of Your Personal Vehicle. The language in the new Amended Act is like:-, ” 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. in accordance to be registered for commercial use with the Transport authority and not put to own use by the Applicant. Ans: No, ITC cannot be availed as same is blocked under Section 17(5) and you do not fall in any of the exceptions as laid down in said Section as tabulated above. Vanilla Reload is provided by ITC Financial Licenses, Inc. ITC Financial Licenses, Inc. is licensed as a Money Transmitter by the New York State Department of Financial Services. She has authored many publications on GST and is into full time consultancy on GST to big corporates. ITC of Insurance, Repairs & maintenance can be claimed? Further in such a situation you will also be able to avail input tax credit in regard to GST paid on Services of general insurance, servicing, repair and maintenance of said Bus. Itc on Motor Vehicle purchased has been explictly denied by section 17(5) of gst except for the follwing condition: 1. Ndaa went into effect on August 13, pls provide notification of above amendment for. 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