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ITC OF CAPITAL GOODS

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LAW STUDIO ASSOCIATES

252 Points Posted on 01 October 2020

capital goods ki itc kaise claim karte hai ek saath claim karni hoti hai ya fir thodi thodi karke claim ki jati hai

Replies (4)

Quick Summary

This discussion clarifies how to claim Input Tax Credit (ITC) on capital goods under GST. You can claim the full ITC for capital goods in your GSTR-3B return at the time of purchase, just like any other goods. However, ensure you haven't claimed depreciation on the tax component of these capital goods under the Income Tax Act, as this would disqualify you from claiming the ITC.

Nidhi

Chief Accountant

3150 Points Posted on 02 October 2020

You have to claim full ITC of capital goods like any other Goods in 3b return

Pawan

CA Final

572 Points Posted on 02 October 2020

Section 16 of CGST Act, 2017 doesn't make distinction between Capital goods and Other goods for allowing ITC. You can claim complete ITC at once but no depreciation on such ITC on Capital Goods should have been claimed under Income Tax act. If depreciation is claimed on such tax component ITC will not be allowed under section 16(3).