INPUT OF PLANT AND MACHINERY

[FARIDUDDIN AHMAD]

Kindly clarify that the input on plant and machinery purchased for hauling paddy to rice can be utilized for payment of tax received from government department for hauling of paddy or not

AI Summary

ITC on Machinery for Hauling Paddy to Rice Mills Allowed Under GST if Used for Taxable Supplies, Per Section 17(5). A query was raised about the eligibility of input tax credit (ITC) on plant and machinery used for hauling paddy to rice mills under GST. Responses clarified that ITC is available if the machinery is used for making taxable supplies, as it is not blocked under section 17(5). If the machinery is used for both taxable and exempt supplies, ITC must be reversed proportionally. It was emphasized that clear facts are necessary for accurate advice, and that rice, as a product of milling paddy, is not considered 'agricultural produce' under certain GST notifications.