Input on purchase of Capital goods

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This query is : Resolved

Quick Summary

If your business deals exclusively in non-GST or exempt items like petrol, you generally cannot claim input GST on capital goods purchased for that business. However, if you also deal in taxable items such as lubricants, you may be able to claim a proportionate input tax credit according to GST regulations.

Ajay R

Ajay R (Querist)

20 March 2022 Hi sir,

My friend recently started the petrol business, he bought some assets for the business, can we claim input gst on those assets, the assets are meant to business only. Please advice me on this, I have little confusion regarding this. Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 March 2022 Petrol is non GST item. Hence input GST can't be claimed on assets used for petrol business.

CA Altamush Zafar

CA Altamush Zafar (Expert)

21 March 2022 If you are dealing in only non GST or exempt items then ITC cannot be claimed. However if you are dealing with both taxable and non taxable items for example lubricants(taxable) and petrol (Non taxable) then proportionate ITC can be claimed that too as per GST rules.

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