Capital goods were purchased to provide fully exempt services in the year 2019, and hence no ITC was availed on the same. Into December 2021 the management decided to use the capital goods for supply of taxable goods and hence as per rule 43 ITC should be availed and the same has to be reversed as 5% or part of the month for the period used to provide exempt services. But here will the assessee be eligible to avail the ITC in the month of December 2021 as the invoice pertains to 2019 and the max time limit to avail ITC is before filing of actual annual return of that year or september month's due date of filling of annual return whichever is earlier and such time has lapsed.
Please help whether ITC can be availed on such goods or not?
CAclubindia
