ITC on Excavator

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This query is : Resolved

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This discussion clarifies whether Input Tax Credit (ITC) can be claimed on excavators purchased for mining and quarrying operations. It confirms that excavators do not fall under the restricted credit category for motor vehicles used for personal transportation. Therefore, ITC is generally claimable on excavators.

CA Parag Shah

CA Parag Shah (Querist)
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30 September 2021 We are in business of mining and quarrying. For business we are going to buy an excavator, should we claim ITC of the same? Is ITC on excavator fall under restricted credit that we can not claim and does Excavator fall under "motor vehicle" as per motor vehicle act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 September 2021 It will not fall under restricted credit.
ITC can be claimed on such excavator.

Udaya Chandran

Udaya Chandran (Expert)
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30 September 2021 ITC on motor vehicles which are used for transportation of persons and having seating capacity less than 13 persons, not available as per the Act.

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