Classic Merchant Private Limited is engaged in a procured business in Kota. He has furnished the following items procured by them in the month of February 2024: S. No. Particular GST Paid (Rs.) (a) Input used for the man

Answer 2A(ii) Computation of Input tax credit available with Classic Merchant Private Limited S. No. Particular Amount in Rs. a. Input used for the manufacture of the final product Since used in course of business hence, input tax credit shall be available. 1,50,000 b. Food and Beverages procured from Sweet Caterers for employees under statutory obligation As per Section 17(5)(b), no Input tax credit is available in respect of food and beverages except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply or if provision of such goods or services is obligatory for an employer to provide to its employees under any law for the time being in force. Since in this case food and beverages are provided to employees under statutory obligation, Hence, input tax credit is available. 60,000 c. Goods used for providing services during warranty period Since used in course of business hence, input tax credit shall be available. 15,000 d. Goods used for setting up Telecommunication Towers being immovable property. As per Section 17(5)(d), goods received by taxable person for construction of an immovable property (other than Plant and Machinery) on his own account including when such goods used in course or furtherance of business shall be considered as ineligible input and no credit shall be allowed of tax paid on such goods. Since Telecommunication tower is an immovable property, hence, no input tax credit shall be allowed in respect of goods used for setting it up. Nil e. Inputs stolen from the factory store As per Section 17(5)(h), goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples are considered as ineligible input and credit of GST paid on such goods cannot be taken. Nil Total Input tax credit available 2,25,000 Note: In the recent judgment in the matter of Bharti Airtel Ltd vs. Commissioner of Central Excise, Pune (2024), the Supreme Court conclusively held that telecommunication towers cannot be construed as being immovable property. It applied tests of permanency, intendment, functionality and marketability and held that telecom towers are movable. Therefore, in case the answer has been solved by availing ITC on telecom tower mentioning valid justification is also correct.