Q. 690 We are buying the machinery for manufacturing of goods. we will be selling these goods under GST @18%. the machinery cost is aprox Rs. 20 crores and the GST aprox Rs. 3.60 crores. So whether we can get the ITC of Rs. 3.60 crors and how we can we utilise i.e. in how many months or periodicity of utilisation or at a time as against the other products or during the trial run production etc ?

Ans. ITC has to be taken as per rule 43 of the CGST rules.

Q. 689 One GST registered person purchased certain taxable goods for self consumption paid GST and not taken ITC. After 2-3 years he wanted to sell that goods without use to a registered person. 1. Will GST require to be charged on it ? 2. What will be documents / process for movement of goods Under which section this transaction is covered for reporting ?

Ans. Since the above transaction is covered under “supply” as per section 7 of the CGST Act, therefore tax is to be levied. 

Q. 688 If driver bhatta is separately indicated in passenger vehicle then is rcm is payable on driver bhatta component also. What about toll charges seperately indicated ?

Ans. Service by way of access to a road or a bridge on payment of toll charges is exempt under notification no. 12/2017- CTR.