Capital Goods Treatment under GST

This discussion clarifies the treatment of capital goods under GST concerning Input Tax Credit (ITC). It addresses whether different rules apply based on whether capital goods are directly related to production (like plant & machinery), indirectly related (like generators), or unrelated (like air conditioning units). The conversation also touches upon the ITC implications when capital goods are sold within five years, highlighting the need for proportionate reversal of ITC or output tax.