A GOODS TRANSPORTER REGISTERED UNDER GST HAS PURCHASED TYRES FOR VEHICLES. IS THE ITC ON THIS PURCHASE COULD CLAIM. CAN THIS TAX PAYER CAN ISSUE THE BILLS WITH TAX TO THE PARTIES.

Reply—As per Section 17(5)(ab) of the CGST Act, 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) of section 17(5) of the CGST Act are blocked and as such not allowed for taking the credit.

However, purchase of truck does not come under clause (a) or clause (aa) and hence the ITC credit on purchase of tyres will be allowed.

If transporter (GTA) is charging GST on forward charge then only he can take input tax credit on purchase of truck and its tyres.