Itc on capital goods in case of a hospital cum pharmacy

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KAVUNGA PARAMBIL SAREENA (Querist)
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24 April 2018 If both the hospital and pharmacy is under the same gstin registration, can the input tax credit on purchase of fixed assets be claimed proportionately against the output tax liability of taxable medicine sales of the pharmacy?
Whether is it beneficial to not to claim credit and rather show the full amount including taxes as Cost of Fixed asset and claim depreciation thereon?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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24 April 2018 Reply is very clear This follows the simple principle that credit is allowed on inputs only if tax is charged on the output. You are not charging any outputs on patient services, you can not adjust output GST On pharmacy from other hospital input service, Even though GSTIN are same since one is exempted services and another is taxable. You cannot avail ITC of hospital.

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Itc on capital goods in case of a hospital cum pharmacy

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