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Input tax credit

ITC / Input 257 views 5 replies

Hello Friends,

 

I have some small queries about GST credit.

 

1. We are a manufacturing unit. We purchased laptops for admin purposes. can we avail ITC of GST paid on purchase of laptops ?

2. What about repair charges (including GST) paid for above laptops. Can we take credit of GST paid on repairs ?

3. We also avail services of Hotels for lodging purposes for clients and technical experts visiting our plant. What about GST charged by hotels?

 

Thanks in advance

Replies (5)
1.if your are considering laptop as capital goods the yes you can take the credit but you can't take the deprecation on the same
2.for repair you can definitely take the credit (if repair is not capitalised)
3.as per section 17(5) Block credit you can't take the credit of food & brevages but you can take the credit of accomodation
for query 1
if you are taking ITC on purchase of laptops then you cannot claim depreciation on the tax components
Example
laptop cost 100000
GST is 18000
total 118000
you have 2 option
option 1 Take ITC and charge depreciation only on 100000
option 2 Don't take ITC and charge depreciation on 118000

Thanks to both of you....can you please give me section reference or case law ?

section 16,17,& 18
thanks
yes u can avail itc on loding services by hotel but the hotel should situated in same state in which u registered. because if hotel is in other state it will never issue u a tax invoice with igst charge therein, as hotels only issue bill with Cgst/SGST charge therein


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