Understanding Business Purposes for ITC

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"BUSINESS PURPOSES for ITC" ITC is allowed only when Input or/and Input Services are used for Business purposes. But what is Business Purpose, lets understand through various orders of AAR and AAAR.

1. National Aluminum Company Ltd. - AAR Odisha The applicant engaged in manufacturing of aluminium will be entitled to ITC of tax paid on inward supply of input and input services for the maintenance of guest house, transit house, and training hostels.

2. A.M. Motors - Kerala AAR Input tax paid by a vehicle dealer on purchase of motor car used for demonstration purpose of customer can be availed as input tax credit on capital goods and set off against output tax payable under GST.

3. Ordnance Factory - AAR Maharashtra Where applicant is a unit of Ordnance Factories Board and it provides medical facility to employees and their dependents free of cost, input tax credit is allowable in respect of medicines purchased in factory hospital and

other inputs and input services used in factory hospital with effect from 1-2-2019.

4. WeWork India Management Pvt. Ltd. - AAAR Karnataka Input tax credit can be availed by applicant on detachable sliding and stackable glass partitions which are movable in nature.

5. Purewal Stone Crusher - AAR Uttarakhand GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit. Hope you will find it useful. Thanks Abhishek Raja Ram 9810638155