Availment of credit on capital goods

[govindaraju velugula]

Claiming 0f VAT on Generator (Capital Goods), which is using in Mines quarry area and no power connection was there for production of rough granite blocks. Without, generator there is no possibility of production of goods. Hence, is there any possibility of claiming input credit on capital goods like generator?

[Mukesh Kumar]

Generator set which is used to mines quarry area where no power connection, should be allowed for the purpose of VAt credit.

AI Summary

Input tax credit on capital goods: generator used in off-grid mining qualifies for VAT credit where essential to production. The generator, being a capital good used directly in the production process at an off grid mining location, qualifies for VAT credit because its use is essential to enable manufacture or extraction of goods.