How to claim ITC on Ac, furniture etc

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129 Points Posted on 13 July 2021

hi,

Recently purchased furnitures, AC for the office and using for business purpose. How should ITC be taken? can take fully or should be split over 60 months. 

And we deal with both exempted & taxable products so whether should part amount reversed or can take fully as used for business purpose only. 

Thanks 

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On 13 July 2021 at 23:39 Report
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Quick Summary
This discussion clarifies how to claim Input Tax Credit (ITC) on office assets like furniture and air conditioners. Unlike capital goods, ITC on these items can be claimed in full in the month of purchase. However, if these assets are used for both taxable and exempted supplies, a portion of the ITC must be reversed proportionally to the exempted supplies over the asset's life (60 months) as per Rule 43 of the CGST Act.

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GST Practitioner
29904 Points Posted on 14 July 2021
No you can take full credit in one go.

Yes ITC need to be reversed in proportion to value of Exempted Supply.
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On 14 July 2021 at 00:19
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STUDENT
1120 Points Posted on 14 July 2021
ITC can avail -It's for business / for the furtherance of businesses otherwise than Govt. Mentioned -Blocked Credit.

In the above case mentioned -you can take ITC.
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On 14 July 2021 at 01:10
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GST Consultant
10402 Points Posted on 14 July 2021
Take full ITC and at the same time reverse them in proportion to exempt supplies on total supplies as per rules.
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On 14 July 2021 at 01:15
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Chartered Accountant
16188 Points Posted on 14 July 2021
Takshila ITC on the acids and deal it taxable products.

Itc should be reversed with proportionate
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On 14 July 2021 at 05:47
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CA
473 Points Posted on 14 July 2021
1st divide between portion of taxable and exempted supplies

later

after 60months we need to take proposinat
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On 14 July 2021 at 08:39
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Chartered Accountant
16188 Points Posted on 14 July 2021
Agree
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On 14 July 2021 at 09:29
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635 Points Posted on 14 July 2021
Agree
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On 14 July 2021 at 10:26
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155 Points Posted on 15 July 2021
What should take in ITC ? tell me section please
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On 15 July 2021 at 08:10
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129 Points Posted on 15 July 2021
Originally posted by : Pankaj Rawat
No you can take full credit in one go. Yes ITC need to be reversed in proportion to value of Exempted Supply.

Thanks. So No need to take ITC over 60 months like capital goods. 

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On 15 July 2021 at 10:48
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GST Practitioner
29904 Points Posted on 15 July 2021
Dear Ramachandran
Yes correct. No need to take ITC over 60 months .

Even if it is capital Asset , the ITC need to claim full in the month it is purchased.
If such capital goods is being used to generate taxable & exempted supply then the ITC in proportion to supply of exempted supply need to reversed on monthly basis till life of capital goods ie 60 months . (Reference Rule 43 of CGST Act )
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On 15 July 2021 at 23:30

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