We are dealing with Academy Racing and Go Karting business. We are conducting X30 Championship during January 2018 in India. For this purpose we are importing 34 nos of engine for the karting to be used by the Racers. While importing the engine we have to pay customs duty at 10.36% and GST at 28% (under HSN Code 8407). We are getting revenue from the Racer as Team charges (under SAC 999652). We are capitalizing these engine. Please clarify us can we claim for input credit of the GST tax paid in the event of capitalizing the engine.
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Gst input on capitalisation
Replies (4)
GST on capital assets can be claimed as per the conditions set out such as :
Such asset should be used for buisness purposes
Capitalized in the books of accounts.
but our consultant advised us not to claim input on Engine. As the Go Kart Engine will be consider as vehicle under GST resime so there will be no input claim on it. Please clarify as the big amount involve as tax portion.
As per my opinion - Since it is your business asset, you can very well claim the same.
Thank you for your valuble advises.
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