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Accumulation of Capital Goods ITC

Bansari T Sheth (CA Final Student) (44 Points)

27 March 2020

100% export of goods with payment of IGST after utilising ITC.
But still they have 2.5 cr capital goods ITC.
How to get refund of capital goods ITC or any other options to get this ITC?

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8 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 March 2020

No you cannot ...... not available.

Harshit Acharya (404 Points)
Replied 27 March 2020

Extra ITC lapsed?

Bansari T Sheth (CA Final Student) (44 Points)
Replied 28 March 2020

ITC other than capital goods are utilised against export with gst but they have not taken capital goods ITC till date.
so we have Capital Goods ITC accumulated...

Harshit Acharya (404 Points)
Replied 28 March 2020

Is there any restriction about not using input on capital goods(at first)?

Bansari T Sheth (CA Final Student) (44 Points)
Replied 28 March 2020

Earlier party is of the opinion that they can not avail ITC ofc capital goods so now they have accumulated ITC.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 29 March 2020

As per section 54 , refund is not available for Un-utilised ITC on capital goods in term of export

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Harshit Acharya (404 Points)
Replied 29 March 2020

If refund is related to unutilised inputs and input services , Is refund available A/C to S.54?

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Bansari T Sheth (CA Final Student) (44 Points)
Replied 29 March 2020

Yes, As per section 54, refund is related to unutilised ITC of input and Input service if goods are exported without GST.

In my case, goods are exported with GST so refund u/s 54 can't claim. And refund is not available for unutilised ITC on capital goods.
So there's any other option to get back of Accumulated ITC of Capital Goods?