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

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

CA Deepak Gupta

Nov 6, 2018

Last update on Nov 6, 2018

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 ITCof GST paid on purchase of vehicles as those vehicles were being used in his core business activity.

The authority opined thatcredit 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.

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CA Deepak Gupta

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