Changes in the definition of inputs,input services and capital goods
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 8-5-2017
GST DAILY DOSE OF UPDATION
Changes in definition of inputs, capital goods and input services
As evident from revised draft, the definitions of the input goods, capital goods and input services have undergone a major change or let's say, it has been simplified to the maximum extent possible. In the current laws, there are definitions containing specifications and restrictions to items and services on which cenvat can be taken or not. But in the new regime, these restrictions have been minimised. For eg. the definition of input is given in sec 2(52) as any goods other than capital goods used o
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s capital goods as they won't be capitalized. It is most probable that they will fall as residuary items in the definition of inputs.
Similarly it has been stated that goods or services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of business won't be eligible for availing cenvat. But if the building is being capitalized then the inputs used in the building will be treated as capital goods and its cenvat should be allowed.
Reply By Sanketh Meri as =
Dear Sir,
In your Last Para, it has been mentioned that if the Immovable Property is capitalized, then its inputs should be allowed for ITC. Can you throw some more light on
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