Itc on capital goods.

ITC / Input 182 views 3 replies

CA Ankur Agarwal

110 Points Joined August 2014

ITC on Capital Goods to be taken by :- ITC/60.

So doubt is this-

For Example if Total ITC is 6000,

And 6000/60=100 per month

So do I have to claim Rs 100 in my Gstr3b every month toll 60 months end

Or can I take total 100*12=1200 in a single month and not claim any amount for the remaining year.

How to do this under both method in GSTR3b

Also how will this be reconciled since the supplier invoice wil be shown only in the month of purchase?

Replies (3)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

The above calculation is done only when you are supplying exempted & taxable supply both out of that capital asset . Else if supplying only taxable then ITC can be claim full (6000) in same month

Lets Assume if you are supplying both taxable & Exempted supply the ITC attributes to Exempted supply has to be reverse every month in 3b for 60 months.

Take the full ITC on capital Goods in the month you purchased.

from Next month The reversal has to be done in following Manner

6000÷60= 100 monthly ITC
Say exempted supply for the month is 10000/- & total supply is 20000/-

ITC attribute to Exempted supply = 100 x 10000÷20000 = 50/-

So have to reverse the 50/- under 3b under Rule 43