GST Input Credit & Depreciation on Modified Trucks

This query is : Resolved

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This discussion clarifies the eligibility for claiming GST input tax credit (ITC) on the purchase of modified transit mixture trucks, which are capital goods used in the concrete manufacturing business. It confirms that ITC can be claimed. Furthermore, the conversation addresses depreciation, stating that while depreciation can be charged on the truck, it cannot be claimed on the GST amount paid, only on the taxable value of the asset.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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25 May 2023 Dear Sirs : One of my client manufacturing (RCM) Redymade Concrete Mixture for supply to constructions sites. He wishes to buy Transit Mixture ( modified ten wheel barrel truck) . My query is "can he claim INPUT CREDIT OF GST in his returns for purchase of these capital Goods" ... Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 May 2023 Yes ITC can be claimed on these capital goods used for the business.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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07 June 2023 Thanks for your kind reply BUT can he charge DEPRECIATION as well and at what should be rate of depreciation... Regards ... Pardeep Kapil

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 June 2023 Depreciation can be charged.
As ITC claimed on GST, GST paid can't capitalised and depreciation claimed on it.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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12 June 2023 Dear Sir : What I understand that depreciation can be claimed only on taxable value say Rs.10,00,000 but depreciation cannot be claimed on GST of RS.1,80,000.00 . Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 June 2023 Yes, you are right.
As ITC claimed on GST.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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12 June 2023 Thanks and kind regards - Pardeep Kapil

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 June 2023 You are welcome...
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