Itc on machinery spares

Spares for machinery are regarded as capital goods and input tax credit can be availed on the same. VAT credit on capital goods may be adjusted over a max of 36 months (but it varies from state to state).

Many Thanx Mam.

Regards

Gireesh

Machinery spares to be treated as Consumable items and ITC can be claimed , under commodity code 2067, for spinning mills. It is allowed. ONly 5% ITC is allowed, and any purchase @ 14.5%,  the ineligible ITC @ 9.5% has to be reversed, becz it is treated tht what the spares supplied to the manufacturer is categorised as " Industrial Input"