Capital goods

This query is : Resolved

Nikita Jain (Querist)
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03 August 2018 , purchase of capital good what should be the accounting treatment in case of non GST goods . what will the treatment of GST ? can be claimed AS ITC or GST will be added to the cost of capital goods.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 August 2018 In case of GST goods claim ITC on GST paid over a period of 60 months/ life of asset. Capitalise cost excluding GST.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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08 August 2018 ITC of GST on capital goods can be claimed in one installment. and need not be staggered

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2018 See the link. Don't give wrong advice.
https://www.indiafilings.com/learn/input-tax-credit-for-capital-goods/

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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08 August 2018 Input credit provisions are dealt with in Section 16 of the CGST Act and as per the Act all credit on goods exclusively used for business including capital goods is available in one installment. For capital goods not used for business ITC is not available GST has to be added to cost of capital goods. For other situations where is partly used for business and partly for personal purpose a proportionate reversal as specified has to be made.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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08 August 2018 Further the query nowhere specified that the capital goods were purchased for business as well as non-business purposes. Hence a general response was made that ITC on capital goods wherever available is eligible in one installment.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2018 Read the link not available in one instalment.

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