The Applicant was engaged in the business of sale of used gold jewellery (second-hand goods) and was discharging GST under ‘Marginal Scheme’ u/r 32(5) of CGST Rules. The Applicant sought advance ruling on whether they can claim the ITC credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses while being under Marginal Scheme. The AAR observed that Rule 32(5) of the Rule, provides provision bars for availment of ITC on the purchase of second hand goods, however, there is no such restriction on the availment of ITC in respect of input services or capital goods. Accordinlgy ITC can be claimed on capital goods by the Applicant under Marginal Scheme u/s 16 to 21 and rules 36-45 of CGST Act and Rules.
In re Attica Gold Private Limited (2022-VIL-288-AAR)
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