Treatment of itc in gst era as compared to cenvat credit

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Abhishek Roy (Querist)
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31 January 2018 Hi,

It is a very important confusion to be clarified relating to the Cenvat credit Rule 2(I) (a) "which mentions that any manufacturer who manufactures excise-able goods if avails any credit on Input services for setting-up of a factory or a factory premises directly or indirectly, relation or in relation to manufacture of goods and the service amount of which the service tax paid is not added in the cost of production / manufacturing, but being considered as a valuating the Asset value of the establishment as to be recorded in the balance sheet, can avail Cenvat credit as per the confusion aroused & cleared regarding "omit-ion of word "Setting-Up" from the definition w.e.f. 01/04/2011" resulting to "remaining of previous definition".

My question is what impact does it throws in the GST era.......................?
please clarify me in details..............................

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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03 February 2018 With respect to the fixed assets, you can either take Input Tax Credit of the GST or the GST value can be added back to the asset and depreciation can be claimed.

Abhishek Roy

Abhishek Roy (Querist)
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03 February 2018 But madam it has become a biggest confusion that though w.e.f. from 01/04/2011 the word "Setting Up" of Capital Goods for support of manufacturing is being omitted, from the Cenvat Credit Rules 2004, but after many survey of the cases related to Ce-stat, mostly the Tribunal court has given permission to avail credit & thus the issues of the definition is still not clear.
Now as per the GST is concerned it is clearly mentioning that no such (except Plant & Machinery) expenses incurred in capital goods for support of manufacturing is not eligible for ITC in gst era.

for your convenience madam this is my mail ID: roy.abhishek100@gmail.com, you can post your reply............

Regards

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