Question

If a box-manufacturer unit buys a truck for supply of finished goods, can he take ITC on a truck purchase?

Answer

Section 17(5) of CGST Act blocks credit on motor vehicles and other conveyances except when they are used:
(i) for making the following taxable supplies, namely:'
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;

(ii) for transportation of goods
In your case the Truck is purchased for transportation of goods, hence you are eligible for credit of GST paid on motor vehicle as well as for other related expenses like Repair, insurance etc. (Reply dt.19/12/2018)