GST Claim for Warehousing Business: Weighbridge ITC

This query is : Resolved

Quick Summary

A business owner providing warehousing services in Bhopal is seeking clarification on claiming GST Input Tax Credit (ITC) for a weighbridge purchased and installed at their site. The advice received suggests that ITC can indeed be claimed on this capital good, spread over 60 months. The owner understands this ITC can be used for tax payments, and is seeking confirmation of this understanding.

Anmol Patel

Anmol Patel (Querist)
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23 June 2020 Hi,
I am a Business Owner. And provide a warehousing service in Bhopal. I need to know If I have paid GST on the Purchase and installation of Weighbridge at my Warehousing site. Can I claim a return on such a purchase or a ITC when I charge the GST while weighing incoming vehicles at my warehousing site?

I Hope someone can help clarify this query. And recommend the right course of action.

Thank You.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 June 2020 Yes you can claim ITC on the purchase and installation of weighbridge. Claim it over a period of 60 months as it's a capital item.

Anmol Patel

Anmol Patel (Querist)
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23 June 2020 Thank you for your reply Stharaman ji. I now know that because the weighbridge is a Capital good used for normal sale I can only claim the get included in the price I paid while purchasing it as ITC. In form GSTR-2 and can be claimed only for 'Credit Ledger' (payment of Tax only) purposes.

Please confirm if I am correct in my understanding of this case. If not please correct me. Really appreciate your expert advice here.

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