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TMI BlogInput Tax Credit on Transport VehiclesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, We are purchasing Trucks and using the same for providing taxable supply, ie. for mining operation. Accordingly, we take full ITC of the GST paid. Later, we are also using the same vehicle for exempt service, ie. GTA. Wherether, there is any requirement to reverse the ITC availed on capital goods, which were originally used for providing taxable service, but later on used for prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding exempt service. Kindly opine citing the statutory provisions. Thank You. Wiyh due regards, Shyam - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to Section 2 (19) of CGST Act, 2017 capital goods means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se or furtherance of business. According to Section 2 (47) of CGST Act, 2017 exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11 , or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; According to Section 17 (5) (a) of CGST Act, 2017 input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax credit shall not be available in respect of the following, namely :- [(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely :- (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) impa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rting training on driving such motor vehicles. However GTA service is not exempt service. In respect of GTA Service you can pay gst @5% without ITC and @12% with ITC. Therefore the question of reversal of ITC does not arise in your case. - Reply By Ganeshan Kalyani - The Reply = Refer Rule 43 . Manner of determination of input tax credit in respect of capital goods and reversal thereof. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Pavan Mahulkar - The Reply = Yes GTA is exempt service when opted to pay under 5% is covered under RCM Under section 17(3) of CGST Act exempt supplies will include the supply where the recepient of the supply is liable to pay tax on RCM basis.. Thus definitely rule 43 will come in to play if you opt to discharge the liability of GTA Services under 5% tax bracket - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KASTURI SETHI - The Reply = Sh. Pavan Mahulkar Ji, - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I concur with the views of Shri Rajagopalan. - Input Tax Credit on Transport Vehicles - Query Started By: - Shyam Naik Dated:- 21-8-2019 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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