second hand Generator for use in business, Goods and Services Tax - GST

[mathur ramachandran]

My client is a GST-registered dealer . He purchased a secondhand generator to be installed and used in his Kalyana mandapam from another GST-registered dealer who was using it for his normal business as a capital asset. He has issued a sale bill charging GST. Can my client claim input credit..

Posts / Replies

[VENU K]

Generator is plant and machinery and as such there is no restriction on using input tax credit subject to fulfillment of other terms and conditions in my opinion.

[KASTURI SETHI]

Since generator qualifies as plant and machinery, ITC is allowed. It is not immovable property. Go through the following decision of AAAR-Guj.

 IN RE : THE VARACHHA CO-OP. BANK LTD - 2023 (10) TMI 473 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT

[Shilpi Jain]

If your client is using this generator to provide services that are taxable under GST, he is eligible for this credit.

[Shilpi Jain]

Though this is subject to fulfillment of other conditions in the law regarding invoice, payment, 2B reflection, etc.

[Padmanathan KV]

Dear MSR sar,

Your client can claim ITC on the said generator as it is a plant & machinery and used for the purpose of business.