Is ITC available on purchase of bio diesel, if the recipient is selling taxable goods. the bio - diesel is used in production of goods which are taxable under gst. on purchases the recipient is paying gst @12%.

Reply- As per Sec 16(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

As bio - diesel is used in production of goods which are taxable under gst  ITC available on purchase of bio diesel,