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TMI BlogRegarding Agriculture equipment's (Shovel) ITCX X X X Extracts X X X X X X X X Extracts X X X X ..... All Dear Experts, Good Morning, Sir we are manufacturing the shovel that is 0% product. 1. My quires is we have purchased the raw material like( Sheets, Pipes) with gst invoice. So can we taken input that ITC from raw material invoice ITC? 2. Some person told me you have to reverse the ITC which is purchase of raw material with gst. Sir I am so confused please advice me that should I taken IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C input from Purchase Or Not. and Will I have to reverse the ITC. - Reply By KASTURI SETHI - The Reply = Sh.Mahesh Rao Ji, If you want to take ITC on the tax paid on your purchase of material for manufacture and supply of shovel, you must be able to utilise the same for payment of tax on your taxable outward supply in the course or furtherance of business as per Section 16 (1) of CGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For utilization of ITC supply of goods or services or both must be taxable. Shovel being agricultural equipment/implement is exempted vide Notification no. 12/17-CT(R) dated 28.6.17 . If you are engaged in any other taxable outward supply of goods or services, you will be able to use that credit earned on tax paid on your purchase of sheets, pipes etc. In that situation, you need not reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse. In GST there is no one-to-one correlation. You cannot claim refund of ITC accumulated because of all exempted outward supplies. You will have to use that credit in taxable supply. - Reply By KASTURI SETHI - The Reply = There is another option for you. There is time limitation for taking ITC but there is no time restriction for utilising ITC. If you plan to suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y any taxable outward supply of goods or service later on at any time, you can accumulate credit of ITC in respect of tax paid on purchase of raw material and use that credit for taxable outward supply later on, since no one-to-one correlation required in GST as already mentioned above. - Reply By Shilpi Jain - The Reply = Utilisation of ITC and availment are 2 different things. First elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibility for availing has to be seen. In the present case the input is used for supplying exempt goods. So clearly no ITC eligible. - Reply By Shilpi Jain - The Reply = In case you are eligible for credit for any transaction and say for instance you are not able to use it, for whatever reason, even then you can and should take the credit. Thus availing of credit is never dependent on whether u c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an use it or not. - Regarding Agriculture equipment's (Shovel) ITC - Query Started By: - mahesh rao Dated:- 12-2-2022 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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