Latest Query & Reply

My query is as follows 

My client has purchased a Bus and given on monthly rent to Company

Bills are prepared by company itself. Company has charged 5% GST on monthly bill

My query is whether ITC of bus purchase can be claimed against rental bill if party charge 5% GST to 
My personal opinion is ITC will not be available , what to do to Claim ITC of bus purchased

pls. guide me in this regards


Dear Sir,

As per section 17(5) of the CGST Act, 2017 input tax credit shall not be available in respect of purchase of motor vehicle and other conveyance except when they are used for

·        Further supply of such vehicle or conveyance

·        Transportation of passengers

·        Imparting training on driving, flying, navigating such vehicles or conveyances;

None of the above three cases are similar to your client case.

Therefore, ITC is not admissible in this case.