PERSON HAVING REGISTRATION UNDER GST AS REGULAR DEALER. AND PROVIDING EARTH MOVING AND EARTH EXCAVATION WORK BY USING JCB AND OTHER SIMILAR MACHINERY.HE IS COVER UNDER 18% GST SLABE. CAN HE AVAIL GST PAID ON NEW MACHINERY VALUE(AT THE TIME OF PURCHASE) AND GST PAID ON REPAIRS AND MAINTENANCE OF MACHIENRY .AT THE TIME OF PAYMENTOF GST ON OUTPUT SERVICES.

1) IS THERE ANY RESTRICTIONS ON AVAILAMENTOF ITC IN THE ABOVE REGISTERED DEALER CASE?

2) CAN HE AVAIL ITC PAID ON PURCHASE OF NEW MACHINERY AT THE PAYMENT OF OUTPUT TAX EVERY MONTH?

3) CAN HE AVAIL ITC PAID ON REPAIRS AND MAINTENANCE OF JCBS .WHILE PAYMENT OF OUT PUT TAX ON TAXABLE SERVICES.

Reply—

1) No, there is no restriction on availment of ITC.

2) Yes, taxpayer is eligible to claim ITC on purchase of new machinery at the time of payment of output tax.

3) Yes, ITC is available on repair and maintenance too.