Can i take full itc of capital goods

ITC / Input 403 views 7 replies
i am offering consultancy services or i purchase a computer system to record the transaction of business
can I claim itc in that case
Replies (7)
Since the purchased product is used for furtherance of the business, we may not avail full ITC from the same. kindly rectify me if it is not correct conceptually.
Yes,ITC can be claimed only on inputs and input services which are used for furtherance of Business and ITC can't be claimed on capital goods
Yes offcourse you can claim ITC

As per the provisions of section 16, subject to the provisions of sec-17, sec-49, of the CGST Act you are entitled to take credit of input tax charged on any supply of goods or services which are used or intended to be used in the course or furtherance of his business.

It should be noted that eligible Input Tax Credit(ITC) should be availed on –

  1. receipt of supplies;
  2. possession of proper invoice/valid document;
  3. Tax has been paid;
  4. Returns were furnished, the same was reflecting in Form GSTR-2A;
  5. making payment to vendors within 180 days from the date of invoice, etc.

However, should ensure that ITC should not use for personal use/consumption, should not depreciation on tax component under Income Tax Act,1961, if availed then such ITC has to be reversed along with interest.

Yes off-course you can avail Input Tax credit on purchase of computer for your consultancy business as in Goods &  Services Act 2017 you can eligible to take credit on supply of goods & services.

Yes off-course you can avail Input Tax credit on purchase of computer for your consultancy business as in Goods &  Services Act 2017 you can eligible to take credit on supply of goods & services.

Yes. You can avail the Input Tax Credit


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