Capital Goods Treatment under GST

Is there any separate rules or treatment of capital goods under GST for ITC of following mentions type:-
- Direct related with Production (Eg. Plant & Machinery)
- Indirect related with production (Eg. Generator)
- Not related with production (Eg. A.C.)
AND
If they are sold within 5 years.
Replies (5)
Quick Summary
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.

You have to calculate proportionate itc

source: https://cleartax.in/s/itc-rules-capital-goods-gst

If all ur capital goods show in ur P/L account and not calculate deprition then you are eligible to claim ITC.
ITC available.
But on selling of capital goods within 60 months, proportionate reversal of itc or output tax whichever is higher is to be paid
Dear Anshuman
Cannot get you .
If you are showing capital goods in p&l then it' is not capital goods .

kindly raise your query with more clarification.
Yes, I I do agree with Pankaj Rawat ji. Please explain your point in clear concept....Mr.Ansuman...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details