Ram & Shyam LLP, engaged in the business of manufacturing of domestic use electrical items, provides the following details relating to the amount of GST paid on various items and asks you to suggest whether any Input

As per Section 16 of CGST Act, 2017, Input Tax Credit (ITC) of GST paid on purchase of electrical transformers of ₹3,00,000/- shall be fully available to Ram & Shyam LLP as the transformers are being used in the course or furtherance of the business of manufacturing of domestic use electrical items. The ITC of Motor Vehicles is not allowable being a blocked credit under section 17 (5) of CGST Act, 2017, however, where such vehicles are being used for transportation of goods the same is allowable. Hence entire ITC of GST paid of ₹1,00,000/- for transportation of material in factory by Mini Trucks is available. ITC on food and beverages is a blocked credit under section 17(5) of CGST Act, 2017 unless the inward taxable supplies are consumed to make outward taxable supplies in the same category. In the present case the same is used for consumption of factory workers and therefore ITC of GST paid of ₹22,500/- on food items is not available.