TMI BlogITC on GST paid for stone breaking charges within plant A manufacturing company acquires land nearby it’s existing boundary for expansion of plant.X X X X Extracts X X X X X X X X Extracts X X X X ..... A manufacturing company acquires land nearby it s existing boundary for expansion of plant. The major part of the acquired land is having high land with big rock which requires demolition for conversion into plane surface for use by plant in any purpose. The company after taking permission from the Mining department, appoint contractor for braking and shifting the stones after conversion by using ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it s machine, labour etc, and for that the contractor issue invoice as rock breaking charges to company. The company also pay GST on royalty paid to Government under the RCM basis. The final product i.e stone is used by the company for internal road and boundary wall etc within the pant. A manufacturing company acquires land nearby it s existing boundary for expansion of plant. The maj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or part of the acquired land is having high land with big rock which requires demolition for conversion into plane surface for use by plant in any purpose. The company after taking permission from the Mining department, appoint contractor for braking and shifting the stones after conversion by using it s machine, labour etc, and for that the contractor issue invoice as rock breaking charges to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany. The company also pay GST on royalty paid to Government under the RCM basis. The final product i.e stone is used by the company for internal road and boundary wall etc within the pant. Whether the ITC is allowable on GST paid to contractors for rock braking charges? GST paid on royalty on removal of such stones is allowable as ITC under GST Act,2017 ? Whether the service of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rock breaking charges will hit under the blocked credit u/s 17(5) (c ) (d) of the CGST Act,2017 as works contract service or construction Service. What will be the correct classification of such service. - Reply By YAGAY andSUN - The Reply = Involved Matter is not free from doubts, better to have a Advance Ruling. - ITC on GST paid for stone breaking charges within plant A manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing company acquires land nearby it’s existing boundary for expansion of plant. - Query Started By: - BipadBhanjan dixit Dated:- 30-5-2020 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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