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

Input tax credit eligibility for mining equipment affirmed; GST on earth moving machinery and consumables is allowable as credit.
GST paid on earth moving machinery used in mining, including tippers and dumpers, and on tyres, tubes and lubrication for crusher plants, is eligible as input tax credit because such mining equipment is excluded from the statutory motor vehicle definition and restrictions on motor vehicle credit do not apply; crushed stone used as aggregate is classified under the notified tariff, supporting credit eligibility for related purchases.