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ITC on Stone crusher Machine

30 November 2023

HSN no 84741010 Earth stone crushing Machine
officer rejected ITC as Ineligible and Tax Interest and Penalty levied pls Guide

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 30 November 2023

What is Your Business...??

Are You use it the same Business...???

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V SUBRAMANIAM (502 Points)
Replied 01 December 2023

If it's used for furthernce of business u can avail.

Money Money (397 Points)
Replied 01 December 2023

I’m sorry to hear that your ITC claim was rejected by the officer. According to the web search results, the HSN code 84741010 relates to machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid form123. This type of machinery is classified as plant and machinery under the GST law, and is eligible for ITC as per Section 17 (5) © of the CGST Act, 20174. However, ITC is not available for any other works contract services for construction of an immovable property, except for plant and machinery4. Therefore, you may be able to claim ITC only to the extent of machine foundation, and not for the entire construction of the factory building4.

You may also refer to some of the articles and case laws that discuss the eligibility of ITC on construction equipment vehicles, such as tippers, dumpers, excavators, etc. under the pre-amended GST laws56. These vehicles are also considered as plant and machinery, and are used for transportation of goods, which is one of the exceptions for availing ITC under Section 17 (5) (a) of the CGST Act, 20175. However, the GST law has been amended in 2018, and the scope of ITC on motor vehicles and other conveyances has been restricted further5. Therefore, you may need to check the latest provisions and notifications before claiming ITC on such vehicles.

sabyasachi mukherjee (27145 Points)
Replied 01 December 2023

Here sec 17(5) is not applicable

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14487 Points)
Replied 01 December 2023

As per sl. No. 126 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 "Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat-treated; macadam of sl*g, dross or similar industrial waste, whether or not incorporating the materials cited in the first part of the heading; tarred macadam; granules cheeping and powder of stones. Therefore CGST paid on the items indicated by you is eligible to avail as credit under CGST Act, 2017 by your client. Section 17 (5) of CGST Act 2017 is not applicable to your client