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Claim of ITC

Rajan Dubey (70 Points)

30 April 2020

If a farmer is registered under GST and having a GSTIN number than can he claim the ITC if he purchase a new tractor.

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3 Replies

Nisha Unadkat (12 Points)
Replied 30 April 2020

If the tractor is purchased for own use than you cant claim the ITC. But if you are selling a tractor to someone else than you claim the ITC.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 30 April 2020

Yes you can avail ITC , but when the Outward supply is Exempted , need to reverse the ITC as per section 17(2) r/w rule 43 of CGST Act .

Note : ITC shall be restricted to taxable supply & no credit is available in respect of goods used for effecting Exempted supplies

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 30 April 2020

Yes... I agreed to Mr Pankaj Rawat Ji reply...

@ Mr Rajan Dubey.,

If the Former's supplies are exempted then ITC will not claimable and it will reversible in GST return.

May be making any taxable supplies also with exempted supplies then ITC will be taken as per ratios...