ITC IN CASE OF MOTOR VEHICLE INCLUDING BLOCKED CREDIT🧵

ITC IN CASE OF MOTOR VEHICLE INCLUDING BLOCKED CREDIT🧵

1) Motor Vehicle used for transportation of Persons 🚗

(A) ITC is blocked for motor vehicles have approved seating capacity ≤ 13 persons (including the driver). 🚗

ITC is also blocked on certain services relating to motor vehicles like insurance, servicing, repair & maintenance.👨‍🔧

BUT, there are some exceptions to point (A) i.e. if motor vehicle is used for:

(i) Making further taxable supply of motor vehicles.

(ii) Making taxable supply of transportation of passengers. 🚖

(iii) Making taxable supply of imparting training on driving such cars.

Then, ITC is available ☝️.

(B) ITC is allowed if motor vehicle have approved seating capacity of >13 person.🚎 

ITC on certain services relating to motor vehicles like insurance, servicing, repair & maintenance are also allowed.👨‍🔧

2) Motor Vehicle is used for transportation of goods:🚚

 - ITC is allowed without any restriction.

 - ITC on realated service like insurance also allowed.