Is GST credit available on purchase of motor car ?

The availability of GST credit on the purchase of a motor car depends on the specific use of the vehicle.  

In general, Input Tax Credit (ITC) is not available on motor vehicles used for personal purposes, including cars, SUVs, and other passenger vehicles with a seating capacity of 13 or less (including the driver).  

However, there are exceptions where ITC can be claimed:

Eligible for ITC:

  • Motor vehicles used for transporting goods: Vehicles like tempos, trucks, JCBs, dumpers, tippers, etc., used for business purposes can claim ITC.  
  • Motor vehicles used for transporting passengers: Vehicles with a seating capacity of 13 or more can claim ITC.  
  • Motor vehicles used for driving training: Vehicles used in driving schools can claim ITC.  
  • Motor vehicles purchased for resale: Dealers who purchase vehicles for further sale can claim ITC.  

Ineligible for ITC:

  • Motor vehicles used for personal purposes: Cars and other passenger vehicles used for personal use cannot claim ITC.  
  • Vessels and aircrafts: ITC is not available on vessels and aircrafts.  

I hope this information is helpful. Please let us know if you have any further questions.

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