Input Credit on Capital goods

ITC on Capital goods can be utilized in one go.
i.e. in the same period of receipt of capital goods

You can claim ITC in installments for the purchase of capital goods for business purposes.

how many installments??

Dear Mr. Sabareesh Ji


1. You can claim ITC in full on capital goods, provided such capital goods pertains only / completely to supply taxable goods of the business.

2. If such capital goods are use for both business & personal use then ITC on the same shall be availed proportionately. (for point no.2 in detail REFER : Section 17(1)+(2)+(3)+(6) + Rule 43)

3. Also, Act provides for "TIME LIMITATION" for availing ITC (section 39). Which applicable for both ITC on CG & ITC on other than CG.

4. According to point no.3, time limitation for claiming ITC is *before filing* any one of the following : (a) GSTR-3 (Section 39) I.e. 20th Oct
(b) Annual Return (GSTR 9) I.e 31st dec.


CONCLUSION:
You can claim full ITC on CG (refer point 1).

ITC on CG also get impacted by nature of business you carry. for this refer section 17(5) : Apportionment of credit and Block credits.

you can claim full itc in the same month

Thank u for ur valuable suggestions