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ITC ON CAPITAL ASSET

This query is : Resolved 

My friend has started the new start up and he has purchased the machinery, He has paid 20,00,000 + GST 18% 3,60,000 = 23,60,000- purchases on 01-11-2020. Sales started from 05-11-2020. Total sales is 8,00,000 + 5% 40,000.00 = 8,40,000. ITC purchase is 4,00,000 + 5% 20,000.00. He has registed for GST on 01-9-2020. He has fillied NIL return for the month of Sep and Oct. 

1. Can he claim the ITC of Rs 3,60,000 at the first month of the filing the GSTR 3B?

Outward GST : 40,000.00

Inward GST : 20,000.00

Net Payable : 20,000.00

Less : ITC on Cpiatl goods : 3,60,000.00

ITC c/f : 3,40,000.00 

2. Can he capitalize the asset and claim depreciation on the same?

3. Is there any other restrction on the claiming the ITC on capital asset?

If he is registered as a regular dealer then he can claim ITC on the machinery in first month itself.
He can capitalize the asset but without GST. On the facts of your case - No, if you are complying the other conditions.



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