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GST Itc on crusher plant

m.prasad (B.Com) (125 Points)

13 March 2024

sir my friend has started stone

crusher plant in 2019 , we have claimed ITC on machinery purchased, cost of machinery is 58,00,000/- Tax amount is Rs. 10,44,000/-, and we didn't not claim depreciation income tax return, can we claim total ITC in GST or percentage wise

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praveen (Expert) (350 Points)
Replied 13 March 2024

Yes, you can claim ITC on GST in 2019 subjected to non claiming of depreciation on such machine.

Money Money (383 Points)
Replied 13 March 2024

Certainly! Let’s break down the situation regarding Input Tax Credit (ITC) on machinery purchased for your friend’s stone crusher plant:

Claiming ITC under GST:
ITC is available for capital goods under GST, including machinery used for business purposes.
However, there are specific conditions to be met to claim ITC1.
Let’s explore these conditions:
Conditions to Claim ITC:
The machinery must be used exclusively for business purposes and not for personal use.
The buyer must hold the tax invoice or debit note as evidence of payment towards the purchase.
The tax invoice or debit note should be filed by the supplier in Form GSTR-1 and appear in the buyer’s Form GSTR-2B1.
Depreciation and ITC:
If depreciation has been claimed on the tax component of capital goods (machinery), then no ITC will be allowed1.
In your friend’s case, since depreciation income tax return was not claimed, this condition does not apply.
Claiming Total ITC:
Your friend can claim the total ITC on the machinery purchased, which amounts to Rs. 10,44,000/-.
There is no percentage-wise restriction on claiming ITC; it can be the entire eligible amount.

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