ITC of Capital Goods machinery

Can a JCB provider on rent claim of input tax if he purchase JCB?
Replies (2)
Quick Summary
This discussion clarifies the Input Tax Credit (ITC) eligibility for capital goods like JCBs under the CGST Act, 2017. Recent amendments to Section 17(5)(a) have made it clear that ITC is now available for earth-moving machinery, including JCBs, and other special purpose vehicles used for business purposes. Previously, restrictions applied to motor vehicles, but these have been eased for specific equipment.

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
13 November 2026
Charted Accountant - Fresher

Neeraj Bhagat & Co

New Delhi

CA Final

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
13 November 2026
Accountant

New Mobile India

Muzaffarpur

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details