Good Morning, Good Evening, Good Afternoon, How are you Sir?
Everyone should always be happy and happy.
This life is all about smiling.
By bearing sorrows and tensions, by being sad, by wasting
your time, have you ever benefitted anyone?
Tensions are in everyone's life Sir.
If you have tensions in your life, then in my life, you
might have more tensions.
The more the age of a person increases, the more he reaches
his position.
The more money he has, the more tensions he has, not less.
This life of yours, 20, 21, 22 years old, is the best life,
believe me.
The best life.
In this, you have a lot of opportunities.
You have an ocean of opportunities.
In every field, you can see where you should build your
career.
What do I like?
What do I dislike?
Whatever you like, whatever you like, build your career
there.
Sir, the world is wasting its time,
I am telling you the truth.
People are running from morning to night.
They are running and running.
No one knows where to reach.
You decide your own destination.
Look for your own path Sir.
Don't copy anyone.
If you follow someone, you become successful.
That will never work.
Which work do you like?
It may not be a traditional work.
It may be a new work.
Do the work you like.
Build your career in that.
Listening to people, seeing them, it doesn't matter.
Life is your life.
After a certain time, you have to live your life on your
terms.
Not by serving others, but on your terms.
I will do what I like.
If I like to get up at 6 in the morning, if I like to get
up at 9,
I will get up at 9.
That is his problem.
He is not wrong and I am not wrong.
He has his own opinion,
I have my own opinion.
But after a certain time, you have to see for yourself.
You have to come to save yourself.
Life is 100% your responsibility and no one will come to
save you.
Get up Sir.
Take this life in your hands.
Live this life on your terms.
Live your life on your terms.
Be dependent on others.
If someone says something to you, you are sad because of
that.
Why are you making yourself sad?
Make yourself so strong that you don't care what he says.
Let him say what he wants.
It's a dog's job to bark.
Keep talking.
Sir, live your life on your terms.
Never copy anyone.
And whichever path you like, follow that path.
Even if you have less money, you will be happy there.
And when you are happy, even if you are not, you are happy
in your family.
Your parents will be happy, your siblings will be happy.
So learn to be happy.
Problems keep coming, but happiness is in your own hands.
Smiling is in your own hands.
Don't give it to someone else.
When he says something good to me,
I will smile.
I will be happy only when he does something good to me.
Happiness is in you.
You have to see it for yourself.
Sir, let's go.
We were talking about section 16.
And we were done with section 16.
Section 16 taught us a lot.
It taught us about eligibility.
It taught us about some conditions.
What are our conditions to get our ITC.
And it was a great section.
Believe me, it was a great section.
But there was nothing like that in it.
If you follow common sense, you will understand.
There is nothing difficult in it.
Next is section 17.
Section 17 basically says that if you take some inputs, you
took some inputs, you took some goods, you took some
services, you purchased, and after paying GST, you are
getting goods and services.
Normally, in the case, you get ITC.
But the case says that you got goods and services.
You got goods and services.
And you will get ITC.
But the problem is that suppose something is non-business.
It means that the output you are making, the goods and
services you took, the goods and services are not for
business purpose.
Some are for non-business purpose.
And some are for business purpose.
In that case, will you get all the ITC?
Sir, open section 16 once.
Open section 16 and see.
Section 16 said that for ITC, you have to take inputs,
goods and services.
And these inputs should be for the business purpose.
Only then you will get ITC.
For non-business purpose, in that case, you cannot claim
ITC.
Do you remember that example?
I gave you that shoe seller.
He used to bring shoes from Punjab and Ludhiana.
He used to bring from Agra and used to sell it.
He purchased it.
Suppose he purchased for 1 lakh.
He purchased for 1 lakh.
And he paid 18,000 for GST.
After paying 1,18,000 for GST, this was his cost.
This was the value of 1,18,000.
1,18,000 for GST.
Now, the demand for girlfriend came.
The girl used to say, take my shoes, they are beautiful.
And he used to say, they are useless.
Don't you remember the section?
In the name of section, you have to motivate her to laugh.
So, the problem was, his girlfriend was asking for shoes
and he used to say, they are not beautiful.
Now, if he had said yes, he would have had to give his
girlfriend shoes.
In that case, he would have given her shoes worth 50,000.
For example, he gave his girlfriend shoes and he sold them
for 50,000.
Now, the ITC he will get, he won't get ITC for this one.
He will get ITC for this 50,000.
For business purpose, the goods consumed, whatever inputs,
goods, services, whatever you have consumed for business
purpose, you will get ITC for that only.
Proportionate your ITC.
ITC for 18,000 is 50-50.
Here, it is 50-50.
So, you will be able to claim
ITC for 9,000.
You will be able to claim
ITC for 9,000. This was the point.
There can be another point.
The second point is, sometimes you make some supplies and
those supplies, it can be some taxable supplies and some
are exempt.
For example,
I bought some goods.
I bought clothes.
After buying clothes,
I did some processing.
So, I made a coat and a shirt.
Now, the government says, the coat has 5% GST and the shirt
is exempt.
I am making two things.
To make those two things, the same inputs are required.
The same inputs are required.
There is no difference.
One thing is taxable.
One thing has 5% GST.
The other thing is exempt.
Now, tell me, will you be able to claim ITC?
Will you be able to claim ITC?
There is a simple rule.
You will be able to claim ITC only if the output that you
are making is taxable.
If your output supplies are not taxable, what is the point?
When you are not able to collect tax from the customer.
In the case of exempt supplies, you cannot collect tax from
the customer.
You cannot collect tax from the customer.
And when you cannot collect tax from the customer, what is
the point of ITC?
In that case, you will not get any ITC.
In the case of exempt supplies, you can get proportionate
ITC in the case of taxable supplies.
Suppose, you have a taxable supply and 25% of it is exempt.
Then, your ITC of Rs.
18,000 will give you 75%.
The remaining 25% will not give you any ITC.
This is the point.
In the case of non-business purpose, you will only get the
attributable ITC for business purpose.
In the case of taxable and exempt, you will only get the
taxable ITC.
In the case of non-business purpose, you will only get the
taxable ITC for business purpose.
only when output is taxable.
So if tax is not payable on the output, then you can't take
the credit.
If a taxable person is making both taxable supplies as well
as exempt supplies.
If a taxable person is making both taxable or exempt, he is
entitled to full credit of ITC, of input or input service
or capital goods exclusively used for the taxable supply.
No credit at all for inputs exclusively used for exempt.
If common inputs are used for taxable as well as exempt,
only proportionate ITC attributable to the taxable supply
is available.
If a registered person is in the business of manufacturing
shoes and he gave 50 pair to his friends free of cost.
ITC on inputs attributable to 50 pair for non-business
purpose will not be available.
Optional method for the banks.
If a non-business person is making both taxable and exempt
supplies as well as exempt, only proportionate
ITC attributable to the taxable supply is available.
goods, capital goods and input services every month, each
month and remaining shall lapse.
Credit of tax paid on inputs and input services that are
used for non-business purpose cannot be availed.
You cannot use non-business people.
And he is saying that this 50% restriction is not for them.
Like if there is HDFC bank and HDFC bank takes service from
its own branch.
HDFC bank for example Mahim branch, they are taking service
from HDFC Pune.
So in that
case 50% provision will not be applied on them.
In that case they can take 100% ITC.
He is saying this.
If you take from your branch then 100%.
If you are taking from outside then 50%.
Restriction of availing 50% ITC shall not apply to the tax
paid on supplies
procured from another registration within the same entity.
And option once exercised cannot be changed during the
remaining part of the year.
So, you cannot take taxable exam. You can take taxable exam.
Blogged credit. This is a very important topic. Chapter is
important but topic is also important.
He is talking about blogged credit.
What is blogged credit?
Sir, blogged credit means, try to understand this normally.
Blogged credit, if you are
taking from outside, is allowed under GST except a small
list.
What is that list? ITC on such items is not allowed even
though the same may qualify as inputs and are used in the
course or furtherance of business.
Now, first point is, motor vehicle and other conveyances
and related services.
Services like, insurance service of cars, servicing of
services, repairs and maintenance.
Sir, what are we studying? What are you trying to teach?
Son, I am trying to teach that there are some goods, some
services which may fall under the definition of inputs.
You should get their ITC.
They are being used for business purpose only.
They are being used for taxable supplies only.
But despite that, government does not give them.
And the first point in that is, motor vehicles.
Motor vehicles and other conveyances.
Sir, what is other conveyances? Vessels, water vessels,
aeroplanes.
These are some things.
Like in motor vehicles, you have cars.
You have cars.
There are motor
vehicles, vessels, aircrafts.
When you buy these things, when you bring GST on these, you
do not get credit for that GST.
There are some conditions.
There are some conditions that if you fulfill them, you
will get it.
And there are some conditions, if you fall there by
mistake, then you do not get their credit, sir.
So, this is the first point.
And there is a related point.
If there is a car, the car will run.
There will be repairs and maintenance.
There will be servicing of the car.
There will be its insurance.
That is the point.
Sir, why are you confusing me? Son, I am not confusing you.
I have just given the introduction.
I have not started teaching yet.
I am just telling you now.
I will start teaching now.
Come here.
What does he say? He says, read it again.
Read it again.
There are motor vehicles, other conveyances and related
services.
Like there is insurance, repair and maintenance.
What does not come in motor vehicles? Vehicle running upon
fixed rails.
Special purpose vehicle which you use in the factory.
You have seen in the factory, sometimes some small vans are
going.
If you use that van in the factory, will you get its ITC?
Look at the definition once and tell me.
Can you get its ITC?
Can we get it?
He is saying that we don't get ITC for motor vehicles.
I said okay, we don't get ITC for motor vehicles.
You are absolutely right.
I agree with you.
But what all do we not get in motor vehicles?
First tell me this.
He is saying that we don't get fixed rail vehicles in motor
vehicles.
And the vehicles that you use in factories, they don't come
in motor vehicles.
So if they don't come in motor vehicles, then they are
normal goods.
If they don't come in motor vehicles, then they are normal
goods.
And when they are normal goods, and I am paying GST for
normal goods, then I can get ITC.
Then I can get ITC.
See, sir, this is it.
Vehicles with less than 4 wheels, with a capacity of 25cc,
they also don't come in motor vehicles.
And when they don't come in motor vehicles, then they are
normal goods.
And when they are normal goods, then I can 100% take their
ITC.
This is the point.
Broadly, ITC
Broadly, ITC is blocked on the motor vehicles, vessels, and
aircraft used for passenger transportation with certain
exceptions.
Sir, here he has started to open up a bit.
Earlier he said that there are motor vehicles, vessels, and
aircraft.
If you buy them, then you don't get their ITC.
You have paid GST.
Very good.
Applause for you.
But you won't get their ITC.
I said, okay.
What did he say in the second point?
He said, if you are using them for passenger
transportation, then you won't get it.
I said, okay.
Passenger transportation.
Sir, now I have started to feel like a CA.
I thought, whatever is written in the law, that is what
happens.
Whatever is written in the law, that is what happens.
You said, if it is for passenger transportation, then you
won't get ITC.
Sir, if I am using them for goods transportation, then?
Then will I get ITC?
You are not giving them for passenger transportation.
But you will give them for goods transportation.
Sir, in that case, in the case of goods transportation, the
good news is that you will get ITC.
In goods transportation.
There is a company, a factory.
They buy a truck.
The goods will come and go.
The raw material will come and go.
The finished goods will go.
The raw material will come in the factory.
The finished goods will go out of the factory to the
showroom.
For that, I bought a truck.
I bought a tempo.
I bought a small elephant.
I am doing transportation of goods.
My purpose is transportation of goods.
Will I get their ITC?
I bought a truck worth 20 lakhs.
I am paying a GST of 2 lakhs.
Will I get their ITC?
The answer is yes.
Why? Because it is transportation of goods.
The goods transport agent unloads the goods from one place
to another.
He is buying that truck, that tempo, that small elephant.
Will he get ITC?
The answer is yes.
It is not being used for transportation of passengers.
It is being used for transportation of goods.
You will get ITC there.
For passenger transportation, you don't get ITC.
But he is not quiet.
He said that for passenger transportation, although you
don't get ITC, but if there are some exceptions,
however, if there are certain exceptions, then in that
case, we can give you that ITC.
But if there are certain exceptions, however, if there are
certain exceptions, then in that case, we can give you that
ITC.
Now, what are those exceptions?
Come, let's check.
Look at this.
What is this?
I have made this image.
He is saying that for passenger transportation,
I will come in front of the image so that you don't get
distracted.
He is saying that for passenger transportation, if you buy
a car, you don't get ITC.
There is a company.
The name of the company was
Growmore.
Do you remember?
Scam92.
So, Growmore Research was the name of the company.
Assume that in today's date, if the company had a GSTN
number, and the company would buy a Lexus car for its
director, Harshad Mehta.
A sparkling Lexus car.
The market price of which is Rs.
45 lakhs and Rs.
10 lakhs extra.
I am buying it for Rs. 55 lakhs.
Do you remember the scene of Scam92?
I will give Rs.
45 lakhs for your car and Rs.
10 lakhs for your tongue.
The car will come straight to my house.
Sir, in that case, if I am buying a car, the company is
basically giving the car to the director.
Assume this.
It is a passenger transport.
It is not a transportation of goods.
Now, I am not going to carry any luggage in a Lexus car.
The Lexus car is for the purpose of passenger
transportation.
Will I get an ITC in that case?
The answer is no.
Look at the image.
This one.
The second example is of
Sallu Bhai.
Sallu Bhai, whether a registered person in GST or not.
Sir, he is providing taxable services.
He is providing acting services, advertisement services,
endorsement services.
So, Sallu Bhai is a registered person.
Now, assume that Sallu Bhai buys a car for his own purpose.
Look at this.
It is an Audi.
Sallu Bhai buys an Audi in red colour.
He buys a car worth Rs.
1 crore and a GST worth Rs.
18 lakhs.
Now, he says that he wants an ITC of GST.
Should he get an ITC?
Whether the car is being used for passenger transportation
or goods transportation?
The answer is passenger transportation.
Now, I will not take it to Audi.
I will not use it for goods transportation.
It is being used for passenger transportation.
In this case,
Sallu Bhai will not get an ITC.
Neither Harshad Mehta nor Sallu Bhai will get an ITC.
Come with me.
There are some exceptions to this.
Look at what it says.
Let's read from the further section.
ITC is also blocked on certain services relating to the
motor vehicles like insurance, service, repair and
maintenance.
Now, try to understand.
Sallu Bhai bought an Audi in red colour.
He said that it is a car worth Rs.
1 crore and has a GST of Rs.
18 lakhs.
I agreed that it has a GST of Rs.
18 lakhs and you will not give me an ITC.
I fought with the GST department.
I fought with them.
They said that they will not give an ITC of Rs.
18 lakhs.
I said that I have an Audi and I get Rs.
100,000 for servicing every 6 months.
When will I get Rs.
It has a GST of Rs. 18,000.
I said that I am not giving an ITC of Rs.
Give me an ITC of Rs. 18,000.
Give me an ITC of Rs.
18,000 for servicing every 6 months.
Sir, will I get an ITC in that case also?
The answer is no.
If I am not getting an ITC of my main vehicle, then the
services related to that vehicle like insurance, repair and
maintenance, servicing, I will not get an ITC of Rs.
This is what is written here.
Look at the basic principle.
The basic principle here is that the motor vehicles,
aircrafts, vessels on which the ITC is blocked, the ITC on
service of insurance, repair and maintenance pertaining to
such motor vehicles, such motor vehicles is also blocked.
The vehicles for which you are not giving an ITC, the
vehicles which are being taken for passenger
transportation, if I am not getting an ITC of my main
vehicle, then how can I get an ITC of insurance, repair and
maintenance?
How can I get it?
I can't get it, right?
Let's see what it says.
Sir, one point came out of this.
You took the point very cleverly.
I said, how cleverly did you take it?
Sir, tell me one thing.
You said that if you are using the vehicle for passenger
transportation, the vehicle is being used for passenger
transportation.
What does passenger transportation mean?
I am a single man, I will drive the vehicle.
I want to buy a vehicle for my family, my wife and children
will travel in it.
Agreed.
Assume that when you are doing insurance, servicing and
repair, you can't get an ITC of that vehicle because the
main vehicle's ITC is blocked.
Sir, tell me this as well.
Tell me this as well.
If there is a vehicle for which I can get an ITC, if there
is a vehicle for which I can get an ITC, then sir, in that
case, if there is a vehicle for which I can get an ITC,
then sir, in that case, if there is a vehicle for which I
can get an ITC, then sir, in that case, in that case, in
that case,
I will get an ITC. I will get the ITC of repair and
maintenance, insurance, vehicle servicing, right? If I am
allowed the main ITC, then I should also get the ITC of
allied services. The answer is yes. You are absolutely
right. If you are taking the main ITC, then you will also
get the ITC of supporting services.
Let's have a look at this table.
See what it says.
Goods and services on which credit is blocked.
Motor vehicle for transportation of persons with seating
capacity up to 13 persons.
Motor vehicles are for transportation of those persons.
Seating capacity is of 13 persons.
In that case, your ITC is blocked.
What was the seating capacity of Lexus?
It was below 13 persons.
What was the seating capacity of Audi?
Its seating capacity was below 13 persons.
Sir, tell me one thing.
Son, I understand what you are trying to ask.
You are trying to ask what I am thinking.
Sir, what are you thinking?
Son, I am thinking that the point here is 13 persons.
If I buy such a motor vehicle which has seating capacity of
more than 13 persons,
then will I get its ITC?
The answer is, whatever is written in the law.
And what is written in the law?
It is written in the law that motor vehicle for
transportation of persons with seating capacity up to 13.
Up to 13.
If it is more than 13, then I will get its ITC.
I am buying a car.
I am buying a Volvo for example.
I bought a Volvo bus.
Why did I buy a bus worth 50 lakhs?
The purpose is for passenger transportation.
What is the ITC?
Suppose I have paid GST of 9 lakhs for purchasing.
It is a Volvo bus.
It is for passenger transportation.
I have already paid GST of 9 lakhs.
Seating capacity is 20, suppose.
Will I get its ITC?
Seating capacity is 20.
Will I get its ITC?
Now tell me, useless people.
Will I get its ITC?
Because it is written here that if motor vehicle has
seating capacity up to 13,
then in that case you will not get its ITC.
But here you will get its ITC easily.
This is the point.
Did you enjoy?
It was a simple thing.
It was a very simple thing.
How has it been changed?
Now this is the language of a lawmaker.
If a lawmaker would have written simply that you will get
it here and you will not get it here,
what would have happened to his father?
What would have happened to his father?
But it is simple.
These are the things that confuse simple people.
There is nothing else.
Just say that there is a transportation of passengers
and the capacity is up to 13 seats.
You will not get it.
Capacity more than 13 seats, you will get it.
Transportation of goods, you will get it.
You will get it.
Three lines are written and the section is over.
For no reason.
What are the exceptions?
Although they do not give you ITC,
but still when will they give?
When will they give?
They are called eligible purpose.
When will you get their ITC?
This is the point.
See what he is saying.
Ineligible motor vehicle when used for the following
purpose,
making for the taxable supply of such motor vehicles.
What is my work?
I buy cars and sell them.
I am a trader of cars.
I buy a car and sell it.
In that case,
this car will become my stock.
It will become my input goods.
It will become my stock.
When it becomes my stock,
then I can claim my ITC.
It will become my stock.
When I am a trader of cars,
I can easily take my ITC
because that car is not a motor vehicle.
It is now being used as a stock.
And when it is a stock,
I can easily claim its ITC.
This is the point.
Making for the taxable supply of motor vehicles.
An example of sale of cars.
Next.
Making taxable supply of transportation of passengers.
Like you drive a bus,
you give bus service,
you drive a taxi, like DTC in Delhi,
BEST in Mumbai,
or state transport buses.
Now when that bus is running,
someone must be buying that bus.
Someone must be buying that bus and making it run on rent.
Whoever is buying that bus,
whoever is buying that bus,
that bus has a seating capacity of more than 13%.
And that is being used for the purpose of transportation of
passengers.
So therefore, I can claim its ITC.
Next.
Making taxable supply of imparting
training on driving such motor vehicles.
Those driving institutes,
those who teach car driving,
that car is a very important thing for them.
I am teaching how to drive a car,
and I won't get ITC anywhere.
Sir, then how will I do business?
Then how will I do business in that case, sir?
So those who are training cars, those who are training cars,
if those people buy cars,
in that case, they will get ITC.
And when they get ITC,
then they can claim ITC on their repairs and maintenance
expenses,
on their insurance expenses.
This is our point.
Have a look.
If you have any remarks, have a look.
Okay. Let's move ahead.
Are there any clear points?
Let's move ahead.
Vessels and aircraft.
Vessels and aircraft is also the same example.
Vessels and aircraft is also the same.
If you are buying for the purpose of transportation of
passengers.
It is a simple thing.
For example, if I am the owner of a company, and I buy an
aircraft for myself.
Sir, in that case,
I won't get ITC.
In that case, I won't get ITC.
Yes, but the condition is that
if I am buying it for the transportation of passengers.
I have my own airline company.
If I am buying it for the transportation of passengers,
then sir, I will get it in that case.
Have a look at what he is saying.
Vessels and aircraft,
when used for the following purpose,
then it is eligible.
What is it?
Making further supply of such aircraft.
What is my job?
Trader of aircraft.
I buy an aeroplane,
and then I sell the aeroplane.
In that case, what is that aeroplane for me?
It is a stock.
It is an aeroplane for you,
but that aeroplane is a stock for me.
I am a trader of that thing.
And when it is a stock for me,
then in that case,
I will also get the ITC on the stock.
Making taxable supply of
transportation of passengers.
Like Air India.
If Air India buys any new aeroplane,
then it will get the ITC of that aeroplane.
Why will it get?
Because it is written here.
Taxable supply of transportation of passengers.
It is clearly written here.
Next.
Making taxable supply of
imparting training
or navigating such vehicles.
Vessels or aircrafts.
Institutes of teaching aeroplanes.
Institutes of making aeroplanes pilots.
Institutes which give you training
on how to become a pilot.
And sir, let me tell you.
Pilot is a very noble profession.
You may not know about this.
It takes a lot of money to become a pilot.
80-90 lakhs.
It takes 1 crore rupees to become a pilot.
Because these pilot institutes
have very high fees.
And you will not believe that if you become a pilot
then per flight you are
being paid around
4-5 lakhs per flight.
You get 4-5 lakhs per flight.
If you become a pilot.
You earn so much on pilot.
Because he is saying
that if you run
a pilot institute
and give training
on flying etc.
For that purpose
if you have to buy an aeroplane then everything is fine.
In that case you will get
ITC.
Last point is transportation of goods.
Cargo aeroplanes
are taken for transportation of goods.
Like those army planes
for transportation of goods.
If there is an emergency
or a flood
then they are taken
for transportation of goods.
If I buy an aeroplane
for transportation of goods
then in that case
I will get ITC.
And when I get ITC
then can I take insurance
repair and maintenance?
Can I take ITC for that also?
Yes, you can.
Now let's come to general insurance.
We will study everything here.
General insurance service
repair and maintenance
relating to ineligible motor vehicle.
Ineligible means
like Lexus.
Ineligible means like Lexus.
They were ineligible.
Although they were for transportation of passengers
but their seating capacity was 13.
Seating capacity was less than 13.
In that case, he won't get ITC, sir.
Okay, sir, he won't get it.
No problem, but when will he get it?
Sir, when will he get it?
Look at this point.
Such services, which are ineligible, relating to ineligible
motor vehicles, when used for eligible purposes.
When for eligible purposes, the same eligible purposes, the
four points that we have told, that he is giving flying
training, driving training, transportation services, you
are a trader, if you are there for that, then you will get
it.
I had covered that point there.
That when it becomes eligible purpose, then you will get
its repair insurance at that time only.
What is the second point?
He says, if you are a manufacturer, you are a manufacturer
of cars, you are a manufacturer of cars, you are a
manufacturer of aeroplanes, in that case also, you will get
that ITC insurance.
Sir, he is giving this point.
Or you are a supplier of general insurance services, in
that case also, you will get its ITC.
This was the point, sir.
This was the point.
Look at it again.
And then the last point is, leasing, renting, hiring of the
motor vehicles, or aircraft on which ITC is not allowed.
In that case, such services when used for outward taxable
supply, same category of services, then he will get ITC
there.
You leased the car, this is that point.
Your car was ineligible, like the seating capacity is below
13.
Seating capacity is below 13.
And I took that car, so now it is ineligible,
I am coming in blocked credit,
I will not get its credit.
But now I leased it.
I leased it.
Outward taxable supply of same category of services is
happening.
Outward supply of same category of services is happening.
Or I gave it to the employer-employee.
In the relationship of employer-employee, for example, the
government employees, judges, they are given cars.
Or if there is a chief minister, he will be given a car.
Now, the car which you will buy, that is a blocked credit.
You do not get its ITC.
But if you are giving it in the relationship of
employer-employee, then you can avail its ITC.
Did you understand this point?
This is a Lexus car.
Harshad Mehta was buying a Lexus car.
So he does not get its ITC.
But suppose Harshad Mehta works in a government company,
and the government company, as part, it was written in a
law that whoever works on this post, he will be given a
Lexus car.
Whoever works on this post, it becomes a statutory
liability.
It was written somewhere in the act that whoever works on
this post, he will be given a Lexus car.
So in that case, there is a relationship of
employer-employee.
It is a statutory obligation.
So in that case, when the company buys a Lexus car, it gets
its ITC.
This is the whole point.
Look at this.
Come, look at the example once.
ITC on cars purchased by manufacturing company.
For employees, it is blocked.
Seating capacity was up to 13 people.
ITC on cars purchased by car dealer.
It is allowed.
Because what is the use of it?
Sale of cars, purchase of cars.
ITC on cars purchased by company engaged in renting of cars
for transportation of passengers.
It is allowed.
This is the right point.
Car driving school is being bought.
It is allowed.
Buses whose seating capacity is up to 24 people.
It is allowed.
Trucks are being used for transportation of goods.
It is allowed.
You are buying aircraft.
For one person only.
Transportation of passengers.
Aircraft is not being bought for normal transportation of
passengers.
You are buying private jet for one person only.
That is blocked.
Okay.
ITC on aircraft
purchased by aviation school.
Aviation school is allowed.
General insurance is taken.
Employees of manufacturing company.
It is blocked.
Maintenance, repairs, etc.
Company.
For a truck.
Used for transportation of the finished goods.
Now look,
Transportation of the goods.
When ITC is allowed on the main service, then the allied
services, the supporting services,
ITC will also be allowed on them.
So, it is allowed.
18th point.
ITC on general insurance service taken on cars manufactured
by car manufacturing company.
Manufacturer, as we read, we give it to the manufacturer.
In that case, it will be allowed.
This was the point.
Blocked credit on motor vehicles.
Although motor vehicles are blocked, but sometimes they are
not blocked.
There were four conditions.
You are a trader.
Transportation of passengers.
You are teaching cars.
Or transportation of goods.
In that case, it will not be considered blocked.
And when it is not blocked, then the allied services,
services of general insurance, you will also get its credit.
This was just one point of blocked credit.
There are three, four, five more points.
We will cover it in the next lecture.
Till then, I will stop here.
Revise it well.
If you don't understand anything, watch the video again.
Otherwise, call me.
Thank you very much.