Section 17(5) of CGST Act denies input tax credit on the specific supplies received by a registered person. Input tax credit on motor vehicles used for transportation of persons is ineligible. We shall discuss the same in detail.
According to Section 17(5) (a) of CGST Act, input tax credit is not available on motor vehicles used for transportation of persons having approved seating capacity of less than thirteen persons, this includes the seat of the driver.
Source Taxguru
