Under Section 17 (5) of CGST Act ITC on motor vehicle is not allowable. A point was being agitated in the mind of learned professionals as to whether ITC on repair and maintenance would be allowable or not. The following judgement clearly says that ITC would be available though under Rule 3 of Cenvat Credit Rules – which are somewhat identical to provisions under GST.
Tata Steels Ltd Vs CST DT 19.7.2017 MANU/CM/0425/2017. clearly and unmistakably says cenvat credit of service tax paid on repairs and maintenance of motor vehicles is permissible. In this judgement entire law on repair and maintenance has been discussed including two judgements of Division Bench of Karnataka High Court CCE VS. Mangalore Refinery and Chemicals Ltd.