Eligibility of input tax credit

This query is : Resolved

Rakesh Sarswath (Querist)
Follow

01 December 2017 Dear all,

I have purchased a capital good for which I have taken depreciation under IT Act @10% however as per section 16(3) of CGST Act, I am not eligible to take input tax credit of GST charged on such capital goods as I have taken depreciation on the same.
My query is whether I am ineligible to take the ITC of only 10% of such tax component (GST component) or I am ineligible to take the whole of tax component (GST component)?

CA Sukesh Bhatia

CA Sukesh Bhatia (Expert)
Follow

01 December 2017 It appears that you have added GST full component in value of Asset while capitalizing it.
Hence, you will not take ITC on full GST component.

CA Anshu Agarwal

CA Anshu Agarwal (Expert)
Follow

02 December 2017 If you are not eligible for ITC on a capital goods under GST, GST paid on such capital goods shall become part of cost of such assets and depreciation shall be claimed on total cost.

However, If you are otherwise eligible for ITC of GST paid on such capital goods, then don't add GST in the cost of assets and depreciation shall be claimed on cost without including GST.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Pushkar Nagda

Aayesha mulani

xavier

Thanwar Chhatwani

Anju Susan

Subscribe Now

Eligibility of input tax credit

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA