Goods and Services Tax – Started By: – DK AGGARWAL – Dated:- 3-10-2017 Last Replied Date:- 7-10-2017 – SirPlease confirm if ITC is allowed on Car repair expenses like change of tyres, change of battery etc when the car is registered in name of company and supplier and receiver are both registered in GST. Is it allowed on normal repair/maintenance also when Car is sent to gurage for change of Oil, filters etc2Is ITC allowed on Diwali gift articles like Toaster, Mixi, sweet boxes etc given to customers as sales promotion.D K Aggarwal – Reply By KASTURI SETHI – The Reply = Not allowed in both cases. – Reply By PAWAN KUMAR – The Reply = In first case, since you are not using car in your outward taxable supplies hence all expenses related to th
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ars are used for furtherance of business. The vehicles are restricted for the ITC. But the services like repairs and maintenance are not restricted under sec. 17(5). Also I have come across many tweets clarifying vsuch position. – Reply By Himansu Sekhar – The Reply = I shall email the tweets to you. Under CCR rules, rule 2(l) specifically restricted such services. Now it is furtherance of business. In my opinion there should no restriction for taking credit if sec. 17(5) does not hinder. – Reply By KASTURI SETHI – The Reply = In this situation ITC is not allowed even it is in the course of or for furtherance of business. When any goods are in the exclusion clause, the phrase In the course of or for furtherance of business has no relevance
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tained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other conveyances except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; If we go through the starting line of it says that notwithstanding anything contained in Sub-section 1 of Section 16……. input tax credit shall not be allowed in respect of the following…… Section 16(1) speaks about availability of input tax credit on good
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