INPUT TAX CREDIT FOR MINING & CRUSHING OPERATION

[CADeep Upadhyay]

One of my clients is involved in stone mining, crushing and selling of crushed stones viz. Grit, Kapchi, Stone Dust etc. He mainly use following capital assets viz. Dumper Trucks, Earth Moving Motor Equipment (viz. JCB 3DX, L&T PC 200 etc.), Crusher Plants for operations. My major queries are:

1. Whether I am allowed to take ITC of GST paid on purchase of Dumper Trucks / Earth Moving Equipment or not?

2. Whether I am allowed to take ITC of GST paid on Tyre & Tubes of Dumper Trucks / Earth Moving Equipment or not?

3. Whether I am allowed to take ITC of GST paid on lubrication oil for Crusher Plant or Not?

Relevant legal provisions prevail in Section 17 (5) of CGST Act, 2017.

C.A. Deep Rajesh Upadhyay

AI Summary

GST ITC Eligibility Confirmed for Stone Mining Equipment; Section 17(5) CGST Act 2017 Restrictions Not Applicable A client involved in stone mining and crushing operations inquired about the eligibility for Input Tax Credit (ITC) under the GST regime for specific capital assets and consumables. The assets include dumper trucks, earth-moving equipment, and crusher plants. The replies clarified that GST paid on these items, including tyres, tubes, and lubrication oil, is eligible for ITC. The provisions of Section 17(5) of the CGST Act, 2017, which restricts credit on motor vehicles, do not apply to mining equipment like tippers and dumpers, allowing the client to claim ITC.