Assessee cannot claim ITC of GST paid on purchase of vehicles used in core business activity : AAR

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Assessee cannot claim ITC of GST paid on purchase of vehicles used in core business activity : AAR | Andhra Pradesh

Authority of Advance Ruling in matter of Indian Cotton Solutions Com Private Limited.

  • Assessee is engaged in providing mobile laboratory service to test the quality of cotton. In this case the applicant purchased 5 vehicles to be used as mobile cotton labs .
  • Assessee claimed ITC of GST paid on purchase of vehicles as those vehicles were being used in his core business activity.

The authority opined that credit of GST paid on purchase of vehicles is blocked credit as per section 17(5) of CGST Act. Hence it was ruled out that applicant is not entitled for claim of ITC.


Click here to download the advance ruling

 

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One comment

  1. 1

    On the topic of ITC on purchase of vehicles used in core business, the reference to the State is mentioned as “KARNATAKA” whereas as per the attached AAR, the same was issued by the State of Andhra Pradesh. The signatory also clearly mentioned as JC, AAR, Andhra Pradesh

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