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Relating to capital asset

This query is : Resolved 
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(Querist)
16 May 2020 Dear All,

Please kindly suggest your views relating to Input Tax credit in Asset Accounting:-

As per notification of the govt. After purchasing a Capital Asset, if we avail depreciation against it under Income Tax Act, ITC in GST is totally disallowed.
And then after certain year of use if we sale the asset we need to charge GST as a regular gst tax payer.

The resultant effect is that it is better to pay the GST without availing any credit just to avoid unnecessary notices & show cause orders from department. (Keeping in view of availing depreciation during certain year of use)
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Soumitra Basu

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Soumitra Basu (Expert)
17 May 2020 If you avail ITC on Capital Goods (which are allowable), you should not claim depreciation on the ITC amount. You should claim depreciation on the amount other than ITC i.e. the amount before charging GST.
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Abhishek Roy

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Abhishek Roy (Querist)
17 May 2020 Thank you sir I got it.
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