ITC availibility on fork lifter

[KARAN VERMA]

Sir

Whether ITC allowed on fork lifter used for moving finished goods with in factory.

[MUKUND THAKKAR]

Yes you can availed credit,

[Venkataprasad Pasupuleti]

Yes. It is eligible

[KASTURI SETHI]

Yes. ITC is allowed. Credit on Fork Lift was allowed in pre-GST era also. Now definition of 'Capital Goods' is more liberal.

See the definition. As per Section 2(19) of CGST Act “capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;

Some of case laws pertaining to pre-GST era are mentioned below:

2001 (130) E.L.T. 876 (Tri. - Chennai) = 2001 (3) TMI 321 - CEGAT, CHENNAI COMMISSIONER OF CENTRAL EXCISE, COIMBATORE Versus ELGI EQUIPMENTS

2000 (125) E.L.T. 555 (Tribunal) = 1999 (12) TMI 453 - CEGAT, MADRAS COMMISSIONER OF C. EX., TRICHY Versus RAVI SHANKAR FILMS (P) LTD.

[CASusheel Gupta]

ITC is blocked for motor vehicles used for passenger transportation (subject to certain exceptions) only.

There is no restriction on ITC on vehicles used for transportation of goods

CA Susheel Gupta

9811004443/8510081001

[KASTURI SETHI]

Fork lift is meant for transportation of goods only in the factory. It does not ply on road as other motor vehicles meant for transportation of passengers.

[YAGAY and SUN]

It is allowed as definition of Motor Vehicles was amended in last budget 2019.

[YAGAY and SUN]

Since, phrase “other conveyance” from Section 17(5) of the CGST Act, 2017 had been deleted, therefore, Input tax credit would now be available in respect of dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles.

AI Summary

Input tax credit on forklifts permitted for goods movement within factory; capital goods definition and amendment allow special purpose vehicles.
ITC is available on forklifts used to move finished goods within a factory because they qualify as capital goods when capitalised in the claimant's books and used in the course of business. The deletion of the phrase "other conveyance" from the ITC exclusion means dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles are not automatically barred from ITC, whereas the block on passenger-transport motor vehicles continues to apply.