ITC on Renting of DG Set along with Diesel

[Manpreet Gulati]

Hi All,

We are taking services of renting of DG Set along with Diesel which is taxable @ 18%. Can we claim the Input if the same is used for furtherance of business.

Thanks

[Amit Agrawal]

What are causes of your doubt about ITC?

[KASTURI SETHI]

Dear Querist,

Pl. elaborate your query.

[Shilpi Jain]

Are you providing taxable supplies with this dg set or are using this in your business which is taxable supplies?

If yes you can claim.

[KASTURI SETHI]

When a querist does not reply to an expert's cross query, it shows lack of interest.

[Padmanathan KV]

Prima facie ITC shall be available as it is not specifically blocked under section 17(5).

[Manpreet Gulati]

Dear Mr. Agrawal, Mr. Kasturi Sethi and Ms. Shilpi Jain,

Sorry for not replying to all your questions. Was unavailable for this period because of some emergency.

Sorry for the Inconvenience caused.

Regards

Kamal

AI Summary

Input Tax Credit available for rented DG set and diesel when used for furtherance of business and taxable supplies.
Input Tax Credit on rental of a diesel-run DG set and diesel is claimable when the services are used in the furtherance of business and in relation to taxable supplies. Prima facie there is no specific exclusion under the blocking provisions noted by respondents, but entitlement depends on factual verification that the inputs are applied to taxable business operations.