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..

AI Summary

Input Tax Credit Available on Secondhand Generator Purchase for Business Use Under GST, Meeting All Conditions. A GST-registered dealer purchased a secondhand generator for use in a business venue from another GST-registered dealer. The question raised was whether the purchaser can claim input tax credit (ITC) on this transaction. Responses from multiple contributors confirmed that the generator qualifies as plant and machinery, thus allowing ITC, provided other conditions such as proper invoicing and payment reflection are met. The generator is not considered immovable property, and its use in taxable services under GST further supports eligibility for ITC.