second hand Generator for use in business

[mathur ramachandran]

My client is a GST-registered dealer . He purchased a secondhand generator to be installed and used in his Kalyana mandapam from another GST-registered dealer who was using it for his normal business as a capital asset. He has issued a sale bill charging GST. Can my client claim input credit..

[VENU K]

Generator is plant and machinery and as such there is no restriction on using input tax credit subject to fulfillment of other terms and conditions in my opinion.

[KASTURI SETHI]

Since generator qualifies as plant and machinery, ITC is allowed. It is not immovable property. Go through the following decision of AAAR-Guj.

 IN RE : THE VARACHHA CO-OP. BANK LTD - 2023 (10) TMI 473 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT

[Shilpi Jain]

If your client is using this generator to provide services that are taxable under GST, he is eligible for this credit.

[Shilpi Jain]

Though this is subject to fulfillment of other conditions in the law regarding invoice, payment, 2B reflection, etc.

[Padmanathan KV]

Dear MSR sar,

Your client can claim ITC on the said generator as it is a plant & machinery and used for the purpose of business.

AI Summary

Input tax credit: secondhand generator treated as plant and machinery allows credit if used for taxable business and conditions met. The generator qualifies as plant and machinery, and input tax credit is allowable where it is used for business taxable supplies, provided invoice, payment, return reconciliation and other statutory conditions for claiming ITC are fulfilled.