banner_ad

Itc on assets

ITC / Input 264 views 3 replies
can both itc and depreciation be claimed on any asset
Replies (3)
No, as per section 16 of cgst act, assessee can claim any of one thing, either ITC or depreciation.
one cannot claim both benefits at the same time.
no, claim either itc or depreciation
You cannot claim both ITC under GST and Depreciation u/s 32 of the Income Tax Act 1961 on the Tax Component.

As per the Provision of Section 16(3) of the CGST Act 2017 :

"Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed."

After claiming ITC on the GST component of the capital goods, capitalize it on the Books of Accounts ( Balance Sheet ) by reducing the amount of GST. Now you can claim Depreciation u/s 32 of the Income Tax Act 1961 on this amount every year by following WDV method.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details