ITC ON PURCHASE MOTOR VEHICLE (MARUTI SWIFT)
Query (Issue) Started By: – aman chourasia Dated:- 7-1-2019 Last Reply Date:- 6-6-2019 Goods and Services Tax – GST
Got 15 Replies
GST
Hi Sir, I have a query, i am a electronics retailer who sales LED TV and other goods to customer,i want to buy a maruti swift car (motor vehicle) for transportation of LED TV LG and SAMSUNG TV to customer residence as free delivery along with customer/passenger,so i want to know am i eligible to claim ITC on purchase of motor vehicle? AS I HAVE READ IN GST LAW THAT ITC IS AVAILABLE FOR "TRANSPORTATION OF GOODS" HERE DO NOTE I AM NOT USING TRANSPORT VEHICLE ITS A PASSENGER VEHICLE "MARUTI SWIFT" AND AS MOTOR VEHICLE IN GST HAS SAME MEANING MENTIONED IN MOTOR VEHICLE ACT 1988,SO I THINK I CAN USE IT TO TRANSPORT GOODS AND CAN ALSO AVAIL ITC ON BUYING A NEW MOTOR VEHICLE.I WILL NOT BE USING THE VEHICLE FOR PERSONAL USE,IF ITS NO, THEN KINDLY GIVE A VALID REASON.
Reply By Alkesh
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t should be understood to be vehicles meant for transport of goods. However, if ITC is substantial then only chance risk to be taken. Otherwise, better to capitalise it as suggested by Mr.Aman earlier.
Reply By KASTURI SETHI:
The Reply:
In the situation explained by the querist, it is relevant to go through the following definitions:
Section 2((76) of CGST Act, 2017 ”motor vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
Section 2 in The Motor Vehicles Act, 1988
Section 2 (28) “motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the rest value as a capital goods, the same way i am doing for other fixed assets like office computer or printer.so in my view ITC should be allowed.
Dear Kasturi Sethi Sir,
As you said ITC is admissible,so i want to know as ITC is allowed under "For transportation of goods" so here transportation means GTA (goods transport agency) ?
Reply By Alkesh Jani:
The Reply:
Dear Aman,
I appreciate your efforts, however, Please refer to definitions at Section 2(7) “contract carriage”, (13) “goods” , (14) “goods carriage” and (31) “permit” of Motor Vehicle Act,1988 and also refer Section 77 of the said Act.
Further, the word used such as commercial or private, or taxi passing, is the word used in common parlance and not as legal terms. Moreover, if your vehicle is not permitted for particular activity, it is not wise to considered as legal activity, if not mentioned in another Act. The beginning should be, is your motor vehicle hold valid permit? If not, than the activity per
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
T on prescribed docs..
2. These must be used in the course of business or furtherance of business.
Reply By aman chourasia:
The Reply:
Dear Alkesh jain Sir,
As per your reply dated 8-1-2019, i wish to say that there is no "contract carriage" in my case, as it will be output service of free delivery of goods and sometimes passenger in car,as per permit definition,we does not need to generate any e-way bill for this item,and now coming to the definition of "goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods,but in the GST as per section 17 blocked credits:-
CREDIT ALLOWED :-"motor vehicles and other conveyances"for transporting the goods.
So shall i understand here " conveyances" means two wheeler , three wheeler and four wheeler will also come under it ?
Reply By KASTURI SETHI:
The Reply:
Yes. There
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r Acts or the legal dictionary meaning for this purpose. The term, "Other Conveyances" has been integrated with Motor Vehicles by the word, "AND". It cannot be separated from the words, "Motor Vehicles". So "other conveyances" must conform to the definition of a Motor Vehicle'
The definition in clause (28) of Section 2 of the Motor Vehicles Act, 1988 is an extensive definition which includes all kinds of mechanically propelled vehicles including a trailer. The scope of the Motor Vehicles Act is to bring into its fold all kinds of moving objects plying on the roads under its ambit so as to provide safety measures and regulate traffic. Therefore, any objects which moves on the road by itself requires registration under the Motor Vehicles Act.
Further it is pertinent to know what is 'conveyance' ? As per Board's Circular No. 22/90-CX.4, dated 11-7-1990 automobiles are conveyances for transportation of passengers, and goods on roads
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =