Capital Goods ITC claim
Query (Issue) Started By: – narendra patel Dated:- 18-5-2018 Last Reply Date:- 11-12-2018 Goods and Services Tax – GST
Got 12 Replies
GST
Suppose a capital good (purely for business purpose) is purchased for 80,000. on 1.4.2018.
\nSo CGST part will be 7200. We avail 1\/5 part (1440) for current year and put reversal entry of 5760.
\nNow, in next year we claim next 1\/5 part (1440).
\nMy question:
\n1. Do we claim next year ITC on 1.4.2019 or 31.3.2020 (ie exactly 1 year after purchase or at the end of next FY) 2. Under which section of GST, do we claim ITC of next year.
\n3. Under which section of GST, do we enter reversal enter of current year.
\nPlease advise.
\nReply By KASTURI SETHI:
\nThe Reply:
\nRestrict<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n credit each year. Hence I asked this question. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n iews it seems I can take FULL ITC in the same year in which I buy machinery (Capital Goods). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Capital Goods ITC claim Query (Issue) Started By: – narendra patel Dated:- 18-5-2018 Last Reply Date:- 11-12-2018 Goods and Services Tax – GSTGot 12 RepliesGSTSuppose a capital good (purely for business purpose) is purchased for 80,000. on 1.4.2018. So CGST part will be 7200. We avail 1\/5 part (1440) for current year and put reversal … Continue reading “Capital Goods ITC claim”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11832","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11832"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11832\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nPlease advise.
\nReply By KASTURI SETHI:
\nThe Reply:
\nDear Querist,
\n You can take full ITC on capital goods in one year. Reversal (you are talking) is required on account of usage of tax paid inputs\/capital goods in the business or furtherance of business in respect of exempted as well as taxable supply of goods or services.
\n Are you engaged in exempted as well as taxable supply ?
\nReply By KASTURI SETHI:
\nThe Reply:
\nDr.Govindarajan Ji,
\n Sir, What I want to say is as under :-
\n During pre-GST era, Cenvat Credit on capital goods was allowed as 50% in first financial year and balance (50% ) in next financial year. In GST regime, ITC on capital goods can be taken in full in one year. (year of <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThank you very much.
\nIf my conclusion from above discussion is wrong, please advise.
\nReply By Shashank Mutha:
\nThe Reply:
\nRespected kasturi Sethi & Govindrajan ji
\nI think that if we charge depreciation on capital goods at the end of financial year than we can't avail ITC .
\nI refer Sec 17 (5) of CGST Act about BLOCK CREDIT
\nIf I am wrong than kindly guide us
\nThank you
\n(waiting for reply)
\nReply By Shashank Mutha:
\nThe Reply:
\n#DR.MARIAPPAN GOVINDARAJAN
\nReply By Shashank Mutha:
\nThe Reply:
\n#KASTURI SETHI
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nIn case of capital goods used for taxable goods then full credit can be taken in one year. And in <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n