Gst registration rule 14A

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12 November 2025 Sir
individual deals in (sand bajari brick jcb rental service) wish to apply for gst registration under Rule 14A,
can he purchase JCB machine for rental services?
can he claim ITC on above JCB machine?
otherwise his monthly billing will be around 2 lac and itc approximately 50k monthly
please suggest
Vikas

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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12 November 2025 An individual dealer registered under GST Rule 14A (simplified registration for small taxpayers with monthly output tax liability up to ₹2.5 lakh) can purchase a JCB machine for providing rental services such as sand, bajari, brick, and JCB rental services.

Regarding the claim of Input Tax Credit (ITC) on the purchase of the JCB machine:

The GST paid on the purchase of a JCB machine used for business purposes like rental services is eligible for ITC claim. JCB falls under earth-moving machinery, and ITC is available on purchase and repair/maintenance of such machinery used in the course of business.

There are no specific restrictions under Rule 14A on claiming ITC for such capital goods (JCB) if used for furtherance of business.

The registered person must pay output GST on the monthly rentals (approx. ₹2 lakh) and can claim ITC on the capital purchase and input services, including repairs and maintenance of the JCB.

The new Rule 14A allows simplified registration and low turnover taxpayers to comply easily, but the entitlement to ITC as a regular taxpayer remains applicable.

Rental services using JCB machinery attract GST at 18%.

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