Input tax credit on capital goods i.e. plant & machinery

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This query is : Resolved

pravin (Querist)

08 December 2018 Sir,

In Excise Input Tax Credit Cenvat on Capital Goods available @50% in Current F.Y. & 50% cenvat available in next f.y.

what is rule in GST Regime on capital goods, can we take Input tax credit 100% in same year on capital goods or distribute as per use of life of capital goods?

For reference :
the credit claimed on capital goods in accordance with the provisions of clauses (c) and (d) of the said sub-section, shall be subject to the following conditions, namely,-
a. The input tax credit on capital goods, in terms of clauses (c) and (d)of sub-section (1) of section 18, shall be claimed after reducing the tax paid on such capital goods by five percentage points per quarter of a year or part thereof from the date of the invoice or such other documents on which the capital goods were received by the taxable person.

Pls. confirm

Udaya Chandran

Udaya Chandran (Expert)

08 December 2018 You can take 100% ITC on capital goods in the month when it is purchased. These provisions are related to the availability of ITC in special circumstances.

pravin

pravin (Querist)

08 December 2018 Sir,
I have received the mail from CBEC Helpdesk against my query

Dear Sir/Madam

Thank you for contacting CBIC Mitra Helpdesk.

Please refer to the resolution below, as provided by the technical team, regarding reference number 201812081713489.

We would like to inform you that,

Under GST regime, Input Tax Credit available on capital goods can be claimed maximum to 20% of total ITC available per annum. For more details, click on the below provided link and refer CGST Rules, 2017: https://www.cbic.gov.in/resources//htdocs-cbec/gst/CGST-Rules-2017-Part-A-Rules.pdf;jsessionid=91C59F27BAEE58F61782C5A0735E30CA

pravin

pravin (Querist)

08 December 2018 sir pls reply of my query

Udaya Chandran

Udaya Chandran (Expert)

08 December 2018 Please refer Rule 43, where only when the capital goods are used for other than taxable supplies like personal purpose or exempted supplies, then the rule is applicable. Otherwise, when you use the capital goods only for the supply of taxable supplies, you can take 100% ITC.

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