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All QuestionsCategory: GST ConsultancyELIGIBILITY OF ITC IN CASE OF PURCHASE OF NEW TRUCK
Profile photo of MUFADDAL MALKANIAdvocate MUFADDAL MALKANI asked 7 months ago

ELIGIBILITY OF ITC IN CASE OF PURCHASE OF NEW TRUCK

Respected Sir / Madam,
First of All, I am very much thank full to your team for giving a regular update on GST, it is helping me too much

My query is as below:

One of my clients is doing mining and quo-ring business of clay, the company has 6 truck and 2 JCB for mining work

from company’s own mines company produce clay and supply to various customers

company provide two types of service to the customer

1. supply of clay including transportation charges and collect GST @ 5% (Material Rate includes transport charges itself), 

2. Supply of GTA (Goods Transport by Road) in which company charges transport charges only and not collecting any GST [ as we issue LR mentioning that GST Should be payable by consigner under RCM Basis)

in the above case, my company earns revenue of approx 2,00,00,000 from clay sale against which we paid 5% GST as well as approx 2,00,00,000 revenue from GTA against which we are not paying any GST.

Now, My question is That if Company Purchase New Truck for giving above services, should the company eligible for GST Input? 

Also if the company purchases truck spare parts so should it eligible for ITC?

From:
Mr. Malkani
M. S. Malkani & Co.
Office No. 8-9-10, 1st Floor,
Barmatik Complex, 
Hanuman Street, Main Bazar,
Wankaner-363621
(Gujarat), India
Mo. +91-84888 00748
Mo. +91-91730 88068

Te. +91-2828-220035
Email: excelmsm@gmail.com

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1 Answers
Profile photo of GAGAN AGGARWALGAGAN AGGARWAL answered 7 months ago

Respected Sir 
As per section 17(5) motor vehicle credit is blocked except when it used for making the outward taxable supply of same category 
Thanks and Regards
CA Gagan Aggarwal 
Email:- gaganaggarwal958@gmail.com
Ph:- 9582573375