ITC on Motor Cycle under GST

By | July 10, 2019
(Last Updated On: July 10, 2019)

ITC on Motor Cycle

Position from 01.02.2019 : Section 17(5) of CGST Act

As per Section 17(5) of CGST Act Input tax credit shall not be available in respect of the following, namely:—

 

 (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;

Position Before 01.02.2019 : Section 17(5) of CGST Act

As per Section 17(5) of CGST Act Input tax credit shall not be available in respect of the following, namely:—

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;

Meaning of Motor vehicles

As per Section 2(76) of CGST  ACT :- “motor vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988;

As per clause (28) of section 2 of the Motor Vehicles Act, 1988:- “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 vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimeters

Input tax Credit on Motor Cycle

ITC on Motor  Cycle, bike Scooter etc Available : when engine capacity is upto 25 Cubic Centimeters

ITC on Motor  Cycle, bike Scooter Not Available :when engine capacity is exceeding 25 Cubic Centimeters

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