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Input credit on oil, nitrogen gas or lubricants

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yash

accountant

346 Points Posted on 24 July 2020

I M MANUFACTURER AND I M USING SOME OIL, NITROGEN GAS , GREASE IN VARIOUS PLANT AND MACHINERY FOR PRODUCTION. CAN I TAKE THE ITC FOR THE SAME, AS PER VAT WE HAVE TO REVERSE SOME PORTION OF OIL ITC USED.

Replies (2)

Quick Summary

Manufacturers using oils, nitrogen gas, or lubricants in their plant and machinery for production can generally claim Input Tax Credit (ITC) under Section 16(1) of the CGST Act 2017. This is permissible as these items are used in the course of business. To avail ITC, ensure you have a valid tax invoice, have received the goods/services, the tax has been paid to the government, and you have filed your GSTR-3B returns.

Shivam RC

Student

7666 Points Posted on 24 July 2020

Yes you can claim ITC as they are used in the course of or furtherance of business by virtue of Section 16(1) of the CGST Act 2017.

Vijayprakash P

776 Points Posted on 24 July 2020

Conditions for availing ITC. 1. Taxpayer should be in a position of tax invoice or any other tax paying document.2.Tax payer has received the goods or servi ces or both.3.Tax charged in respect of such supply g has been actually paid to the Government, either in cash or through utilisation of input credit.4.Taxpayer has furnished Monthly return.GSTR3B.