Claim for Refund of Input Credit under GST

Quick Summary
This discussion addresses queries regarding the refund of input tax credit (ITC) for a truck purchased under a GST registration for a tours and travels business. The user wants to know if the substantial ITC of Rs. 5,40,000 can be used for a trading business or claimed as a refund. Experts advise that ITC on capital goods like trucks is generally not claimable if used for exempted supplies or if depreciation is claimed. It's recommended to use the truck for taxable supplies to be eligible for ITC, and to avoid potential penalties and interest by reversing ineligible credit.

Originally posted by : CA Rashmi Gandhi
Input claimed as per Rule 43 and therefore he has to made calculation for 5 yearsa accordingly

 

Yes, I agreed.

Then Why this reply can't be given earlier...

 

Note : 

If the querist deal only "TOURS & TRAVELLS" then the ITC is ineligible and it will be reversible.

But, Querist also deal another business which taxable. As per the taxable supply he can claim the ITC if the TRUCK used in the furtherance of business.

Originally posted by : Saravanan nagaraj
The truck is a capital goods which used for business purpose as per CGST it says you can use ITC when it is used for business purpose.

But, CGST act u/s 43 rules on capital goods ITC will not be claim. If you are claim depreciation.

An assesse can't avail this both benefits. If an assesse claim ITC in GST and Taxable portion can be claimed depreciation but it was restricted by income tax too.

 

The truck is a capital goods which used for business purpose as per CGST it says you can use ITC when it is used for business purpose.

-- Yes, If it's used for business purpose

But, CGST act u/s 43 rules on capital goods ITC will not be claim. If you are claim depreciation.

--> This is not a good one. Bcoz, How it's possible to claim both benefits? As per accounting policy the ITC just account in only one head. It's can't be account in both of ITC & Capital head.

An assesse can't avail this both benefits. If an assesse claim ITC in GST and Taxable portion can be claimed depreciation but it was restricted by income tax too.

--> Yes Sir...

Originally posted by : Saravanan nagaraj
Either you can claim ITC or depreciation. You can't enjoy both benefit. Capital goods ITC can be utilised partially every year. Now days, It is completely restricted and monitor by GST official. 

Demand notice will be issued by GST state government, until rectify this. Your GST portal login and E-way bill login will be blocked. 

Please reverse it. Don't take risk. It gives you lot of stress and lose money in the name of penalty and interest at 2%.

Ok sir noted. And sincerely appreciate your immediate reciprocation. 

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