Goods and Services Tax – Started By: – S R AGRAWAL – Dated:- 16-8-2017 Last Replied Date:- 17-8-2017 – Dear Experts, I have to submit if the Input Tax Credit will be admissible in case Capital Goods as defined under Rule 2(a) of the CENVAT Credit Rules, 2004 cleared prior to 01.07.2017 and received in the factory of manufacturer after 01.07.2017? Section 140 of CGST Act, 2017 contains the transitional provisions and Sub-section (5) relating to Inputs and Input Services, but no such provisions are found in respect of Capital Goods. Kindly advise. Thanks, S R AGRAWAL. – Reply By KASTURI SETHI – The Reply = There was some restriction for taking ITC on Capital goods during transition period. So the word, Capital Goods' does not find place.
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e unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit unless the said credit was admissible as CENVAT credit under the existing law and is also admissible as input tax credit under this Act. Explanation.-For the purposes of this sub-section, the expression unavailed CENVAT credit means the amount that remains after subtracting the amount of CENVAT credit already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of CENVAT credit to
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l goods in its ambit, in my opinion, it is an unintentional error and you may please take up the matter with the authorities concerned and the same will be remedied. – Reply By KASTURI SETHI – The Reply = Peruse definition of Capital Goods as per Section 2 (19) of CGST Act, 2017. The goods which have been capitalised on the books of account on those goods input tax credit can be claimed and used ____________. Capitalisation is important to avail ITC. In other words, the definition of ITC includes capitalised goods also. Emphasis is supplied on capitalisation. – Reply By Ganeshan Kalyani – The Reply = Input and input services supplied pre GST but invoice received and accounted in the books in the month of July was allowed for 30 days from th
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