Question ID :
42218
Cess paid on purchase of Car
An asessee has purchased a car for business use of travelling
and paid GST as well as Compensatory cess on it. He is not eligible to claim GST input on car. Whether Cess paid on such car will also be of no use and will have to be capitalised.
Posted by
Mahesh Kumar
on
Feb 15, 2022
Filed Under
GST
As per section 11 of the The Goods and Services Tax (Compensation to States) Act, The provisions of the Central Goods and Services Tax Act, and the rules made thereunder, including those relating to assessment, input tax credit,........................ etc, as far as may be, mutatis mutandis, apply, in relation to the levy and collection of the cess leviable under section 8 on the intra-State supply of goods and services, as they apply in relation to the levy and collection of central tax on such intra-State supplies under the said Act or the rules made thereunder.
Since all the provisions of the CGST Act will apply in case of cess leviable, including for input tax credit, blocked credit provisions of CGST Act will also to be complied with.
Hence, if the ITC of GST paid on car is a blocked credit, ITC of Cess paid also cannot be availed.
Posted by
HEMANTH P on
Feb 17, 2022
Answer ID :
81425
Not allowed.
Posted by
VINAY BHARGAV KUMAR G on
Feb 18, 2022