ITC claim on fixed assets ?

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4 Points Posted on 26 January 2022
If I take ITC on fixed assets so I can not take depreciation claim on fixed assets ?
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On 26 January 2022 at 18:01 Report
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Quick Summary
This discussion clarifies the rules regarding Input Tax Credit (ITC) on fixed assets under GST. You cannot claim both depreciation on the tax component of capital goods and ITC on that same tax component. If you claim ITC on fixed assets, depreciation is available only on the cost excluding the GST amount. Conversely, if you don't claim ITC, depreciation can be claimed on the full invoice value, including GST.

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GST Practitioner & Accounts
15150 Points Posted on 26 January 2022
Yes, as per section 16(3) of the CGST act , where the registered person has claimed depreciation on the tax components of the cost of capital goods and plants and machinery under the provisions of the Income tax act 1961 , then the input tax credit on the said tax components shall not be allowed .
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On 26 January 2022 at 18:15
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Profession
28271 Points Posted on 27 January 2022
This insertion is being made to negate double credit on fixed assets.
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On 27 January 2022 at 06:56
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GST Consultant
15986 Points Posted on 27 January 2022

If you take ITC on fixed assets then you cannot claim depreciation on tax amount. Depreciation will still be available on amount of fixed asset excluding GST amount

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On 27 January 2022 at 08:46
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Chief Accountant
3150 Points Posted on 28 January 2022
If You take ITC on fixed assets, than Depreciation is available on amount excluding GST.
If you don't take ITC, than Depreciation is available on full invoice value(i.e incl. GST)
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On 28 January 2022 at 11:14
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Student
3273 Points Posted on 29 January 2022

yes , as per sec 16 of cgst act if you claim ITC  on capital goods you cannot claim depreciation.

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On 29 January 2022 at 13:35
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Chartered Accountant
12739 Points Posted on 29 January 2022

either ITC or depreciation .

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On 29 January 2022 at 15:46
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Chief Accountant
3150 Points Posted on 29 January 2022
It's not either ITC or depreciation.

If You take ITC on fixed assets, than Depreciation is available on amount excluding GST.
If you don't take ITC, than Depreciation is available on full invoice value(i.e incl. GST)

So, Depreciation is available on both case, but amount on which depreciation available will change
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On 29 January 2022 at 15:50
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Chartered Accountant
12739 Points Posted on 29 January 2022

in brief meaning is same .. 

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On 29 January 2022 at 15:52
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Chief Accountant
3150 Points Posted on 29 January 2022
No, People taking its as like..

if ITC taken..
than depreciation all together not available.
that's not a case.
1 Reply
On 29 January 2022 at 15:56

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