INPUT TAX CREDIT FOR MINING & CRUSHING OPERATION
Query (Issue) Started By: – CA Deep Upadhyay Dated:- 27-8-2017 Last Reply Date:- 27-8-2017 Goods and Services Tax – GST
Got 3 Replies
GST
One of my clients is involved in stone mining, crushing and selling of crushed stones viz. Grit, Kapchi, Stone Dust etc. He mainly use following capital assets viz. Dumper Trucks, Earth Moving Motor Equipment (viz. JCB 3DX, L&T PC 200 etc.), Crusher Plants for operations. My major queries are:
1. Whether I am allowed to take ITC of GST paid on purchase of Dumper Trucks / Earth Moving Equipment or not?
2. Whether I am allowed to take ITC of GST paid on Tyre & Tubes of Dumper Trucks / Earth Moving Equipment or not?
3. Whether I am allowed to t
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e classifiable under heading 2517 attracting CGST @2.5%. Therefore CGST paid on the items indicated by you is eligible to avail as credit under CGST Act, 2017 by your client. Section 17 (5) of CGST Act 2017 is not applicable to your client.
Reply By Himansu Sekhar:
The Reply:
I am quoting the answer through thefaq released by the department
Question 21: Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a
mining company be allowed as input credit?
Answer: The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 2017 the expression 'motor vehicle' shall have
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