Rule 8 – Final Rules (Draft) – Input Tax Credit – GST – Input Tax Credit – Final Draft Rules 18-5-2017 – Rule 8 – 8. Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases (1) Subject to the provisions of sub-section (3) of section 16, the input tax credit in respect of capital goods, which attract the provisions of sub-sections (1) and (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,- (
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eful life of such goods shall be taken as five years from the date of invoice for such goods: Provided that where any capital goods earlier covered under clause (a) is subsequently covered under this clause, the value of A shall be arrived at by reducing the input tax at the rate of five percentage points for every quarter or part thereof and the amount A shall be credited to the electronic credit ledger; Explanation: An item of capital goods declared under clause (a) on its receipt shall not attract the provisions of sub-section (4) of section 18 if it is subsequently covered under this clause. (d) the aggregate of the amounts of A credited to the electronic credit ledger under clause (c), to be denoted as
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aggregate of Tm for all such capital goods. (g) the amount of common credit attributable towards exempted supplies, be denoted as Te , and calculated as: Te= (E÷ F) x Tr where, E is the aggregate value of exempt supplies, made, during the tax period, and F is the total turnover of the registered person during the tax period: Provided that where the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of E/F shall be calculated by taking values of E and F of the last tax period for which details of such turnover are available, previous to the month during which the said value of E/F is to calculated;
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