ITC of Capital Goods machinery

Can a JCB provider on rent claim of input tax if he purchase JCB?
Replies (2)
Hi
The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 201 7 the expression ‘motor vehicle’ shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988, which does not include the mining equipment viz., tippers, dumpers. Thus, as per present provisions, the GST charged or purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit
Amendment Act 31, of 2018 has amended Sec.17(5)(a) by omitting "other conveyance" & this amendment makes it clear that ITC would be now available in respect of dumpers, work-trucks, fork-lifts trucks & other special purpose vehicles.
Hence Credit is available on purchase of JCB.

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