Q. 257 One of my clinet doing cash management agency, i.e., Cash deposit in ATM. For that purpose of cash depositing, he purchased a cash carry van. Can he eligible to claim ITC on that purchase. Kindly Clarify.

Ans- According to Section 17(5)(a) of CGST Act, 2017, input tax credit on motor vehicles and other conveyance is not available; however, the exception has been carved out inter-alia to the motor vehicles and other conveyances used for transportation of goods. As per section 2 “Goods” means every kind of movable property other than money and securities but includes actionable claims, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under contract of supply;” The currency transported is for the purpose of carrying out the business of maintaining ATMs and it is not used for consideration for settling of any obligation. Hence it will not cover under definition of money. That means , you can claim ITC of cash carry van as it covered under transportation of Goods ITC under Section 17(5) of CGST Act ,2017