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GST input

23 June 2017

In current VAT system (Jharkhand), we don't take input vat on capital goods (taken 50% current year and 50% on next year in excise input), we can take it only on raw materials and coal. when GST apply, can we taken SGST & CSGT as itc on capital goods too.

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2 Replies

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 24 June 2017

As far as the capital good is purchased after 1st july, full credit of gst is available in one installment.
On goods purchased before 1st july if you have any balance of cenvat credit unutilised, you can claim that too fully provided you have shown then in return of under previous law. As far as itc of vat on capital goods is considered, since in your state earlier the same has not been allowed hence you cannot claim it in respect of any goods purchased before 1st july as it is the condition that itc must be allowed under both the regime.

For summary in your case-
cap goods purchased after 1.7 - 100% itc in one installment
cap good purchase before 1.7- balance of cenvat credit available but not of vat credit.

For state other than jharkhand where itc on cap goods is available, balance of the same van also be claimed in gst provided the required conditions are fullfilled.