TaxTMI 
TaxTMI 
I want to know that the inputs used for machines are also claimable as inverted refund.
Is ITC of items used for machines i.e.Capital goods are eligible for ITC Inverted refund ?ITC re
22 Jul 2019 
4 Replies 
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Input Tax Credit eligibility: ITC on stores and spares is claimable for inverted-duty refunds if not capitalized.
Refunds for accumulated ITC due to inverted duty structure exclude input services and capital goods that are capitalized, but inputs such as stores, spares, packing materials and materials for machinery repairs may be included in Net ITC for refund purposes so long as they are used or intended for use in the business and their ITC is not restricted, and provided the items have not been capitalized in the claimant's books of account. (AI Summary)
Refunds for accumulated ITC due to inverted duty structure exclude input services and capital goods that are capitalized, but inputs such as stores, spares, packing materials and materials for machinery repairs may be included in Net ITC for refund purposes so long as they are used or intended for use in the business and their ITC is not restricted, and provided the items have not been capitalized in the claimant's books of account. (AI Summary)