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Can we claim itc input on government grant

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Hello, 

Please advice me can we claim gst itc input on the money came from government grant used for purchase of machinery for business activity. . 

Replies (4)
Yes. It's not restricted. Grant is for purchase of machinery. All transactions are independent of another or to say"separate legs of a transactions"
NO YOU CANNOT CLAIM .

@ sabyasachi mukherjee.. may i know why ITC cannot be claimed and associated sections with it.

I dont think ITC is either blocked  as per Section 17 or ineligible as per section 16

 

 

 

@ sabyasachi mukherjee.. please share the reasons and relevant sections so we can reach conclusion for this intriguing query


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