🔒

^®

Subscribe Free GST updates on...

Subscribe to Best GST Library of India and get ahead of the rest. Click here for plans.

Till now It has been a topic of debate whether GST on repair and maintenance, insurance and servicing of cars or motor vehicles is eligible to be taken as input credit or not. The opinion of experts was divided. Few had an opinion that there is nothing in law which restricts a person from availing its credit. Whereas others had a belief that the same is not allowed.

Amendment in Section 17 by CGST (Amendment) Act, 2018 dated 29.08.2018

The above debate has come to end with the amendment in section 17(5) of CGST Act.  The amended version of the section is as below:

"(5) Notwithstanding anything contained 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 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;

(aa) vessels and aircraft except when they are used––

(i) for making the following taxable supplies, namely:—

(A) further supply of such vessels or aircraft; or

(B) transportation of passengers; or

(C) imparting training on navigating such vessels; or

(D) imparting training on flying such aircraft;

(ii) for transportation of goods;

(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):

Provided that the input tax credit in respect of such services shall be available—

(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;

(ii) where received by a taxable person engaged—

(I) in the manufacture of such motor vehicles, vessels or aircraft; or

(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;"

From the above amended section, it can be seen that a new clause [i.e. clause (ab)] has been inserted which specifically puts a restriction on availing input credit of GST on repair and maintenance, insurance and servicing of cars or motor vehicles. The credit is available only when the vehicle is being used for any of the below three purposes.

(A) used for further supply of such motor vehicles; or

(B) used for transportation of passengers; or

(C) used or imparting training on driving such motor vehicles;

 

MR X IS REPAIRER OF PVT MOTOR CAR, HE HAS PURCHASED SPARE PARTS FOR REPAIRS OF THE ACCDT PVT CAR VEHICLES FROM MR Y. CAN MR X AVAILED INPUT CREDT IN RESPECT OF GST ON SPARE PARTS WHICH HE HAS PURCHASED FROM MR Y AND MR Y HAVING GSTIN NOS. NOW REPAIRER MR X HAS RAISED THE INVOICE WITH GST ON SPARE PARTS

Shell we claim input in GST on Vehicle Repair & maintance & Insurance in partnership firm on personal used vehicle for director. if yes or not please clarify through notification.

UltraTech Cement to contest 7.92 crore GST demand notice on account of GSTR-2A and GSTR-3B mismatch.

25 Apr 2024   4.45k

ITC cannot be denied merely on the ground of non reflection in GSTR-2A : High Court

24 Apr 2024   10.13k

ITC Mismatch demand set aside by High Court because authorities failed to consider certificate obtained by buyer from the supplier and CA of supplier.

22 Apr 2024   8.92k

Taxpayer assigned to State GST Authorities cannot be assessed by Central GST Authorities and vice-a-versa: High Court

19 Apr 2024   6.15k

Amid GST portal deficiency, GSTN recommends extension of GSTR-1 due date for the month of March.

12 Apr 2024   4.93k

Quick Links

GST Library

Login
Register
About GST Library
Subscription (Pricing)
GST Updates
GST Calendar
GST Case Laws
GST Case Laws Sitemap
Full Site Search
GST Vides

GST Notifications
GST Act & Rules (Section-wise)
GST Act & Rules (Chapter-wise)
GST Forms
GST Forms (Category-wise)
GST Rates
Classification by CTA (Chapter-wise)
Classification by CTA (Search Tool)
E-way Bill
Finance Bill

E-invoice Applicability Calculator
Inverted Duty Refund Calculator
GST Set-off Calculator
ITC Reversal Calculator
GSTR-3B Manual
GSTR-9 Manual
GSTR-9C Manual

Others

GST e-books
GST Domains Sale
About Us
Our Services
Contact Us
Privacy Policy
Terms & Conditions

taxreply.com © 2024. All Rights Reserved