guar gum milling ITC on capital goods

[BAJRANG DAIYA]

one manufacturar of guar gum industry purchase plant and machinery for his mill. his main product like guar gum split is taxble @ 5% under gst act and his by product like korma and churi is exempt from tax. now the ITC Claim on plant and machinery whole are requed to reversal proportionate basis or he can claim whole ITC on capital goods used. can he also claim ITC on packing material like bardana for taxable supplies ?

AI Summary

Guar Gum Manufacturer Seeks Clarity on Input Tax Credit for Capital Goods and Packing Materials Under GST Sections 17 & 18. A manufacturer in the guar gum industry seeks guidance on claiming Input Tax Credit (ITC) for plant and machinery used in production. The main product, guar gum split, is taxed at 5% under GST, while by-products like korma and churi are tax-exempt. The query involves whether ITC on capital goods should be reversed proportionately or claimed in full, and if ITC on packing materials for taxable supplies can be claimed. Respondents suggest referring to GST Act Sections 17 and 18, treating by-products as finished products, and consulting an expert for detailed advice.