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How to claim ITC on Ac, furniture etc

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Ramachandran R

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

Replies (10)

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.

Pankaj Rawat

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.

Balamurali Unnithan MS

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.

CA Altamush Zafar

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.

CA. Sourav Sarkar

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

Sravan Reddy G

473 Points Posted on 14 July 2021

1st divide between portion of taxable and exempted supplies

later

after 60months we need to take proposinat

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 14 July 2021

Agree

Imthias ahamed Kormath

635 Points Posted on 14 July 2021

Agree

Sateesh Kumar

155 Points Posted on 15 July 2021

What should take in ITC ? tell me section please

Ramachandran R

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.

Pankaj Rawat

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 )