TaxTMI 
TaxTMI 
INPUT OF PLANT AND MACHINERY
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....NPUT OF PLANT AND MACHINERY<br> Query (Issue) Started By: - FARIDUDDIN AHMAD Dated:- 20-5-2023 Last Reply Date:- 22-5-2023 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>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 Reply By FARIDUDDIN AHMAD: The R....
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....eply: let me clarify that the paddy is being supplied to rice mill owner for hauling to get rice. owner of the rice prepare bill of hauling charges and charge GST on it Reply By FARIDUDDIN AHMAD: The Reply: kindly read "owner of the rice mill" Reply By Shilpi Jain: The Reply: Pls be clear on your query. ITC eligibility is asked in whose hands? The Mill owner? Mill owner provides s....
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....ervices to whom - Government or a person who has received the supply order from Government? ITC is simple, if it is used for making taxable supplies, ITC is eligible as the present ITC is not blocked u/s 17(5). Pls ensure that the services are not exempt. Further clarity on facts can enable better comment Reply By Padmanathan Kollengode: The Reply: The ITC is not blocked under section 17(5). B....
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....ut there maybe restrictions under 17(2) r.e.r 43. consider following aspects as well:- 1. If exclusively engaged in paddy hulling taxable @ 5%, then full ITC is eligible. 2. if the said machinery is used for both paddy hulling as well as manufacture and supply of rice, then ITC has to be reversed to the extent of turnover of exempt supply as per Rule 43 ( NB:- supply of rice is taxable only if ....
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....it is "pre-packed and pre-labeled", otherwise exempt) Reply By Amit Agrawal: The Reply: I agree with my professional colleagues. It is always advisable to raise your query with clear facts & also, giving reasons/s behind your doubt/s to get better answers. Reply By Ganeshan Kalyani: The Reply: Input tax credit is eligible for credit if the output is taxable under GST. Reply By KAS....
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....TURI SETHI: The Reply: GST : Rice obtained as a product of milling process of paddy is not "agricultural produce" as defined in Para 2(d) of Notification No. 12/2017-C.T. (Rate) as milling process undertaken by millers change essential characteristics of produce from paddy to rice which are distinctly identifiable and separately marketable commodities.-----AAR--KARNATAKA Hindustan Agencies - 2021....
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.... (12) TMI 722 - AUTHORITY FOR ADVANCE RULING, KARNATAKA.<br> Discussion Forum - Knowledge Sharing ....