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GST Council May Expand Vehicle ITC Benefits
India’s GST Council is set to consider a proposal that would widen input tax credit (ITC) eligibility for business‑owned motor vehicles and simplify interstate verification checks. The move aims to reduce compliance costs for companies, boost cash flow and encourage greater use of commercial fleets, while maintaining oversight through streamlined reporting mechanisms.
The GST Council is reviewing a proposal to broaden input tax credit (ITC) for vehicles used by businesses, which would also simplify interstate verification procedures.
- Wider ITC: Companies could claim credit on a broader range of motor vehicles.
- Eased checks: Interstate inspections would be streamlined, cutting paperwork.
- Financial impact: Expected to improve cash flow and lower compliance costs for firms.
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