ITC of Capital Goods in GST
ALLOWABLE , YOU CAN TAKE THE ITC . . .
Yes... Allowed as per following...
Example
ABC Ltd has purchased 3 machineries in April 2017 to be used for various purposes as per the table given below. Total aggregate supplies = Rs.18 cr, value of exempt supplies = Rs.3 cr. Calculate ITC for the month of April 2017.
|
Details |
Machine - 1 |
Machine - 2 |
Machine - 3 |
|
|
Exclusively for exempt supply |
Exclusively for taxable supply |
For both exempt and taxable supply |
|
Purchase price |
400000 |
500000 |
600000 |
|
IGST @ 12% |
48000 |
60000 |
72000 |
|
Invoice value |
448000 |
560000 |
672000 |
|
ITC - eligibilty |
Ineligible |
Eligible |
*Note |
|
Amount of ITC |
0 |
60000 |
72000 |
Tax credit for a tax period for Machine – 3 = 72000/60 = 1200 .
ITC attributable to exempted supplies = 3/18 * 1200 = 200.
The above amount of Rs.200/- will be added to the output tax liability for every tax period.
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