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GST Dept has Denied ITC on Capital Goods

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Sanjay

Director

155 Points Posted on 16 September 2022

GST Dept has Denied ITC on Capital Goods. In my case, its laptops.

We are a service exporter registered under LUT..

What are my options?

Thanks in advance!!

Replies (5)

Quick Summary

A service exporter registered under LUT is facing denial of Input Tax Credit (ITC) on capital goods, specifically laptops, by the GST department. While ITC is generally eligible for business use if Section 16(2) conditions are met and not blocked under Section 17(5), there's confusion regarding Notification 18/18/2017 which might affect refunds on capital goods under LUT. The user is seeking clarification and options to contest this denial.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 16 September 2022

ITC is eligible on laptop if it is used in course & furtherance of Business, moreover the condition prescribed in Section 16(2) is satisfied then there is no reason to deny ITC & It's not even block under the Section 17(5].

So ask department under which Section they are denying the ITC for the same

prasad Nilugal

GST Practitioner & Accounts

15146 Points Posted on 17 September 2022

I think notification 18/18/2017 dated 16/11/2017 , ITC on Capital goods under LUT is not refundable,or permissible that may be the reason, please confirm from Department of Goods and service tax.