ITC claim on purchase of capital goods

[V Rajalakshmi]

whether Supplier of ready-to-cook food paying tax @5%on output can avail ITC on capital asset purchase?

AI Summary

Supplier of ready-to-cook food taxed at 5% can claim ITC on capital assets if sold as goods, not services. A user inquired whether a supplier of ready-to-cook food, taxed at 5% on output, can claim Input Tax Credit (ITC) on capital asset purchases under the Goods and Services Tax (GST). The response clarified that ITC eligibility depends on whether the item is sold as goods and tax is paid; ITC is restricted only if it involves the supply of services.