Capital goods

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Nikita Jain (Querist)

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.

Please resolve the query

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

04 August 2018 Sir,
For non GST you take a assets value as your capital goods and depreciation will be taken full, but in GST tax is added in the asset bill, only gross value will be capitalised and the tax portion you take as ITC, Depreciation also taken from Gross value.

Nikita Jain

Nikita Jain (Querist)

04 August 2018 That means if ITC is not claimed.. then assets value will be including GST in case of non GST Goods. Depriciation will CALCULATED ON FULL AMOUNT

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

06 August 2018 Yes if Input not taken we can use the full value

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