Can we claim itc input on government grant

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)
Quick Summary
This discussion explores whether businesses can claim Goods and Services Tax (GST) Input Tax Credit (ITC) on machinery purchased using funds from a government grant. While one user suggests it's claimable as transactions are independent, another strongly disagrees. The conversation seeks clarification on the specific reasons and relevant GST sections that might either allow or disallow such claims.

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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