***Capital Goods***

This discussion clarifies whether crushed stones, pebbles, and gravels purchased in bulk by a work contractor are considered capital goods. The consensus is that these items are typically treated as stock or current assets, especially if used for daily operations or resale. However, if a customer capitalises these materials for their own use, they might be considered capital goods for that customer. The eligibility for Input Tax Credit (ITC) under GST depends on whether these goods are used for providing taxable services.