One of my client having a two wheeler, used for carrying the articles required to run business activity. I will be much obliged if you inform me whether ITC on scooter purchase can be availed in calculating output taxes. Please guide in the matter.

Reply-As per Section 17(5)(a) input tax credit shall not be available in respect of motor vehicles used 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

ITC will not be allowed on purchase of scooter in terms of section 17(5) of CGST Act. ITC on goods vehicles are allowed but scooter is not a goods vehicle even if you are using it for transportation of goods.