Question 33: We are running brick kiln business (MFG) & we want of purchase 3 Vehicles jcb-tractor & canter. Please advice itc can be claim on these or not.

Answer: The ITC of Vehicle can be claimed if you are paying tax on outward supply The credit is restricted by Section 17 (5) the same is as follow
5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:'
(a) motor vehicles and other conveyances except when they are used''
(i) for making the following taxable supplies, namely:'
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods So credit can be availed on tractor and canter,
The JCB is although registered with RTO but it is not vehicle for transportation it is classified under chapter heading of machine in chapter 84 it should not be considered as vehicle and you can claim credit of the TAX paid on it. (Reply Dt. 19/12/2017)