Comprehensive Guide to Input Tax Credit (ITC) on Motor Vehicles under GST: Decoding Section 17(5)(a) and Blocked Credits - Taxscan

Introduction The introduction of Goods and Services Tax (GST) in India was a major reform in indirect taxes, which was mainly based on the principle of “Input Tax Credit” (ITC). The fundamental strength of the GST regime is the frictionless flow of credit across the supply chain as it is aimed at eliminating the cascading effect of taxes. But this flow is not absolute. The legislature has given sp…