Input tax credit— Section 16 of CGST Act— In the instant case, the applicant is engaged in the business of sale of used gold Jewellery (second-hand goods).

The applicant has sought advance ruling in respect of the following questions:-

i. Whether Applicant who is under Marginal Scheme can claim Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses?

ii. Whether ITC is allowed to be claimed on Capital Goods for the Applicant under Marginal Scheme?

The applicant states that they are into sale of second hand goods i.e used gold jewellery which they are buying from individual persons and hence they following "Marginal Scheme" for discharging the GST liability under  Rule 32(5) of the CGST Rules 2017. The Applicant wants to know whether they can claim Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses while being under Marginal Scheme.

Held that— i. Applicant who is under Marginal Scheme can claim Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses subject to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017.

ii. ITC can be claimed on Capital Goods by the Applicant under Marginal Scheme subject to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017.