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The taxpayer is eligible for input tax credit on the tax paid on the purchases of goods, i.e. equipments, furniture and also on the reagents / consumables

Input Tax Credit — Authority for Advance Ruling — ITC on Furniture, Equipments etc.– The applicant engaged in supply of various reagents/ medical consumables in addition to provision of diagnostic services. The applicant has been allotted space to establish & set up a complete Molecular Diagnostic Laboratory. All the equipments would be purchased by the applicant and installed at the lab. The responsibility of running the lab with all necessary technical staff is on the applicant. The applicant receives the samples from the patients and issues respective reports. The applicant sought an advance ruling as to whether he can avail ITC on the equipments, furniture etc. which we are purchasing for this and on the reagents/ consumables they would be purchasing for performing the tests as the reagents / consumables are taxable and not the test.
Held that:- The Hon’ble Authority for Advance Ruling held that the applicant can avail the ITC on the equipments, Furniture, etc. which he is purchasing for the project, subject to the restriction of the same in terms of Section 17(2) of the Act.—Sri Siddalingappa Palalochana Rakshit, “Bangalore Medical System”, In Re… [2020] 28 TAXLOK.COM 007 (AAR-Karnataka)