I am a GST registered person engaged in supply of consultancy services. I have bought a Motor Cycle for business use. Will I be able to get Input Tax Credit on the GST paid on purchase of the Motor Cycle.
No, ITC cannot be availed as same is blocked under Section 17(5) and you do not fall in any of the exceptions as laid down in said Section as tabulated above.It is important to note here that only the vehicles having less than four wheels which are fitted with engine capacity of upto 25 CC are not motor vehicles as per Motor Vehicle Act and as Motor Cycle are normally of 100 CC and above they would squarely be covered under the expression Motor vehicle and thus input tax credit thereon is blocked subject to exceptions laid down under Section 17(5).
Further in case the credit on motor cycle is blocked you will also not be able to avail input tax credit in regard to GST paid on Services of general insurance, servicing, repair and maintenance of said Motor Cycle.