Latest Query & Reply

Dear Sir/Madam

With respect to above subject Matter, our client is Contractor and have motor vehicles like Truck and Cars, whether credit is available on Purchase of Spare Parts and Repairing & Maintenance and on purchase of tyre tube of that vehicles.

Thanking You

Reply

Dear Sir,

As per section 17(5) of CGST Act, 2017 input tax credit shall not be available in respect of purchase of    motor vehicles and other conveyances except in few cases. But services in the nature of repairs, insurance etc. for motor vehicles are not hit by the blocked credit provisions contained in Section 17(5) of GST law and accordingly ITC for the same is available provided these services are used in the course or furtherance of business. Hence, the contractor is eligible to take ITC on the same.