Dear Sir,
Whether credit on capital goods can be taken immediately on receipt of the goods?
1. Yes
2. No
3. After usage of such capital goods
4. After capitalizing in books of accounts
What is the correct answer from above four option?
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Credit on Capital Goods
Replies (3)
receipt is a condition to avail ITC as per section 16. capital goods definition says anything which is capitalized in books is a capital asset. so date of capitalization is important
Thank you sir
As per the Provision of Section 16(2) of the CGST Act 2017, inorder to claim ITC, a person has to satisfy the below mentioned FOUR CONDITIONS :
1). Received the Goods or Services.
2). Possession of TAX INVOICE.
3). Supplier must have paid the taxes ( GSTR-3B ) and,
4). The Recipient must have filed the Return.
An Asset becomes a Capital Asset when it is capitalised in the books of accounts of the person claiming ITC [ 2(19) of the CGST Act 2017 ].
Hence, correct answer is (4).
1). Received the Goods or Services.
2). Possession of TAX INVOICE.
3). Supplier must have paid the taxes ( GSTR-3B ) and,
4). The Recipient must have filed the Return.
An Asset becomes a Capital Asset when it is capitalised in the books of accounts of the person claiming ITC [ 2(19) of the CGST Act 2017 ].
Hence, correct answer is (4).
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