ITC on capital goods

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This discussion clarifies the rules around claiming Input Tax Credit (ITC) on capital goods under GST. Contrary to some interpretations, it's confirmed that the full ITC on capital goods can be availed at the time of purchase. The relevant section of the CGST Act is referenced for further details.

CA. Rahul Dwivedi

CA. Rahul Dwivedi (Querist)
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26 January 2020 Dear sir,
Can we avail ITC on capital goods immediately after purchase or we have to avail it in 60 months. Kindly Advice

Akash Monwani

Akash Monwani (Expert)
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26 January 2020 U can avail Full ITC at the time of Purchase of Capital Goods.

CA. Rahul Dwivedi

CA. Rahul Dwivedi (Querist)
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27 January 2020 Thanks Akash,
Can you please share the relevant section/notification..??
As our GST auditor is of the view that we can avail ITC on capital goods on proportionate basis in 60 months not at the time of purchase.

Akash Monwani

Akash Monwani (Expert)
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27 January 2020 Please Refer Section 16 of CGST Act

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