Regarding Agriculture equipment's (Shovel) ITC

[mahesh rao]

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 ITC input from Purchase Or Not. and Will I have to reverse the ITC.

AI Summary

ITC on Raw Materials Not Claimable for Exempt Shovels; Allowed for Other Taxable Supplies Without Utilization Limit An individual sought advice on whether they could claim Input Tax Credit (ITC) on raw materials purchased for manufacturing shovels, which are exempt from GST. Experts responded that ITC can only be utilized for taxable supplies, and since shovels are exempt, ITC cannot be claimed for them. However, if the individual engages in other taxable supplies, they can use the accumulated ITC. It was clarified that while there is a time limit for claiming ITC, there is no restriction on its utilization. Eligibility for ITC depends on the nature of the supply, and exempt supplies do not qualify.