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?
M. S. Malkani & Co.
Office No. 8-9-10, 1st Floor,
Hanuman Street, Main Bazar,
Mo. +91-84888 00748
Mo. +91-91730 88068