Bharat Ltd., a registered supplier under the regular scheme, is engaged in manufacture of electronic items. The following details for the month of March, 2019 are available: Item GST Paid (₹) Machines acquired for manufa

Computation of ITC available Particulars Amount (₹) i. Machineries acquired for manufacture of electronic items is eligible for ITC. However, depreciation has to be claimed on the net value excluding the GST. It is assumed that the GST amount has not been considered for the purpose of depreciation under section 32 of the Income-tax Act, 1961. 10,00,000 ii. Electronic items utilized in manufacture. The ITC would be fully available as these are used in the course of business / furtherance of business. [Section 16 CGST Act] 25,00,000 iii. Trucks used for transporting materials. ITC on motor vehicles for transportation of goods has not been blocked under Section 17(5) of the CGST Act. Hence, it is eligible for input tax credit. 1,00,000 iv. Under Section 17(5) of the CGST Act, ITC on food and beverages is a blocked credit unless they are consumed to make outward taxable supplies in the same category or as part of mixed supply or composite supply or it is obligatory on the part of the employer to provide such service to its employees under any law. However, in the present case, food and beverage have been consumed within the factory. Hence, not eligible. Nil Total ITC available 36,00,000