Shyam Ltd., a registered person, is engaged in the business of black pepper, cardamom and cinnamon. It provides following details in relation to GST paid on inward supplies procured by it during the month of March, 2025:

Answer 2(b) Computation of Input Tax Credit that can be availed by Shyam Ltd. for the month of March, 2025 Particulars ITC (₹) Purchase of raw spices which are sold to customers (Every registered person is entitled to take credit of input tax charged on any supply of goods to him which are used or intended to be used in the course or furtherance of his business.) 2,00,000 Electric machinery purchased for being used in the manufacturing process (Every registered person is entitled to take credit of input tax charged on any supply of goods to him which are used or intended to be used in the course of furtherance of his business.) 3,00,000 Motor vehicle used for transportation of employee (ITC on motor vehicles for transportation of persons with seating capacity ≤ 13 persons (including the driver) is blocked except when the same are used for (i) making further taxable supply of such motor vehicles (ii) making taxable supply of transportation of passengers (iii) making taxable supply of imparting training on driving such motor vehicles. In the given case, since the supplier is in the business of spices, ITC on motor vehicle used for transportation of the employee is blocked credit assuming the seating capacity of motor vehicles ≤ 13 persons (including the driver) Nil Payment made to contractor for construction of staff quarter [ITC is not available for works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service] Nil Total ITC 5,00,000 Note: The question has been solved assuming the seating capacity of motor vehicles ≤ 13 persons (including the driver). Alternative Answer 2 (b) Computation of Input Tax Credit that can be availed by Shyam Ltd. for the month of March, 2025 Particulars ITC (₹) Purchase of raw spices which are sold to customers (Every registered person is entitled to take credit of input tax charged on any supply of goods to him which are used or intended to be used in the course or furtherance of his business.) 2,00,000 Electric machinery purchased for being used in the manufacturing process (Every registered person is entitled to take credit of input tax charged on any supply of goods to him which are used or intended to be used in the course of furtherance of his business.) 3,00,000 Motor vehicle used for transportation of employee (ITC on motor vehicles for transportation of persons with seating capacity ≤ 13 persons (including the driver) is blocked except when the same are used for (i) making further taxable supply of such motor vehicles (ii) making taxable supply of transportation of passengers (iii) making taxable supply of imparting training on driving such motor vehicles. In the given case, since the supplier is in the business of spices, ITC on motor vehicle used for transportation of the employee is not covered under blocked credit assuming the seating capacity of motor vehicles > 13 persons (including the driver). 1,05,000 Payment made to contractor for construction of staff quarter [ITC is not available for works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service] Nil Total ITC 6,05,000 Note: The question has been solved assuming the seating capacity of motor vehicles > 13 persons (including the driver) and accordingly claimed the ITC.