# Blocked Credit on Motor Vehicles, Vessels and Aircraft
Section 17(5) blocks ITC on certain conveyances. Decide based on (a) what it carries, (b) seating capacity, and (c) end-use.
## (1) Motor Vehicles
```
Designed to carry → GOODS PEOPLE (incl. driver)
↓ ↓
ITC ALLOWED ┌────────────┴────────────┐
Seating ≤ 13 Seating > 13
↓ ↓
ITC BLOCKED ITC ALLOWED
```
Exceptions (ITC ALLOWED even on ≤13-seater for people):
- Further supply (e.g. car dealer's stock, demo car)
- Transportation of passengers (e.g. travel operator)
- Driving school (training on driving)
Definition notes:
- A bike is designed to carry people → ITC blocked even if used to carry goods.
- The following are NOT 'motor vehicles' → ITC ALLOWED:
- Vehicles on fixed rails (railways)
- Special-purpose vehicles in enclosed premises (e.g. forklift)
- Vehicles with < 4 wheels AND engine capacity ≤ 25 cc
---
## (2) Vessels and Aircraft
```
Used to carry → GOODS PEOPLE
↓ ↓
ITC ALLOWED ITC BLOCKED
↓
Exceptions (ITC ALLOWED):
- Further supply (e.g. Boeing, Airbus mfr/dealer)
- Passenger transport (e.g. IndiGo)
- Training on navigation/flying
```
---
## (3) Notified Services Linked to the Above
Applies to: General insurance, servicing, repairs, maintenance of the motor vehicle/vessel/aircraft.
```
If ITC on the vehicle is ALLOWED → ITC on insurance/servicing also ALLOWED
If ITC on the vehicle is BLOCKED → ITC on insurance/servicing also BLOCKED
```
Exception (ITC allowed on these services even when vehicle ITC is blocked):
- Service availed by manufacturer of such vehicle
- Service availed by insurer of such vehicle (for claim settlement)