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Capital Goods ITC in GSTR 3B

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Libissa

Accountant

337 Points Posted on 14 March 2023

I am going to run a crusher so i have bought machinery items [ Capital Goods , Manufacturing ] which cost around 2 crores and GST 18% - 3600000 can i avail the full ITC Rs. 3600000 in GSTR - 3B for capital; goods or not and purchase some steels and pipes for fitting the machinery can i avail that also in my ITC and going to sale only Blue Metal & Dust which tax ony 5% only

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Quick Summary

This discussion clarifies the eligibility for claiming Input Tax Credit (ITC) on capital goods purchased for a crusher business. The user can claim the full ITC on machinery costing around 2 crores, including the 18% GST paid. Additionally, ITC can be claimed on steel and pipes used for fitting the machinery. This applies even though the final product, blue metal and dust, is taxed at a lower rate of 5%.