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Claim of ITC

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Rajan Dubey

65 Points Posted on 30 April 2020

If a farmer is registered under GST and having a GSTIN number than can he claim the ITC if he purchase a new tractor.

Replies (3)

Quick Summary

Farmers registered under GST with a GSTIN can potentially claim Input Tax Credit (ITC) on new tractor purchases. However, ITC is generally not claimable if the tractor is for personal use. If the tractor is used for making taxable supplies, ITC can be availed. If outward supplies are exempted, ITC needs to be reversed as per Section 17(2) read with Rule 43 of the CGST Act. ITC is restricted to taxable supplies, and no credit is available for goods used in exempted supplies.

Nisha Unadkat

27 Points Posted on 30 April 2020

If the tractor is purchased for own use than you cant claim the ITC. But if you are selling a tractor to someone else than you claim the ITC.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 30 April 2020

Yes you can avail ITC , but when the Outward supply is Exempted , need to reverse the ITC as per section 17(2) r/w rule 43 of CGST Act .

Note : ITC shall be restricted to taxable supply & no credit is available in respect of goods used for effecting Exempted supplies

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 30 April 2020

Yes... I agreed to Mr Pankaj Rawat Ji reply...

@ Mr Rajan Dubey.,

If the Former's supplies are exempted then ITC will not claimable and it will reversible in GST return.

May be making any taxable supplies also with exempted supplies then ITC will be taken as per ratios...