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ITC ON TRACTOR PURCHASE FOR GOODS TRANSPORTATION

18 April 2021

Respective

sir /madam

one of my client dealings in water supplies. now he want to purchase TRACTOR for transportation of his own products ( water) . in this case ITC on TRACTOR can be claimed??

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4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 April 2021

Yes ITC can be claimed as it is used for furtherance of business and for transportation

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CA Altamush Zafar (GST Consultant) (15961 Points)
Replied 18 April 2021

ITC allowed provided all other conditions of section 16 and 17 are complied

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RENU SHARMA (1388 Points)
Replied 18 April 2021

Yes itc would be allowed as he is going to use tractor for business purposes

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 18 April 2021

Yes ITC is definitely available...... but subject to conditions prescribed in section 17(2) it's available if your outward supply is taxable.

So in term of Rule 43 need to reverse the ITC in proportion to Exempted supply.

Note : Supply of water to MC is Exempted vide Notification 12/2017 CT (r)

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