ITC on capital goods

The amount of ITC (in full)  in respect of the capital goods used or intended to be used exclusively for effecting taxable supplies including zero-rated supplies shall be credited to the electronic credit ledger. (For Business Purpose).

ITC in case of capital goods used commonly for exempt and taxable supplies and/or business and non-business purposes. then it spread over 5 years life of the asset.

ITC on Capital Goods available as under: 

(1) Capital Goods used only for personal use & exempted sales - NO ITC

(2) Capital Goods used only Normal Taxable sales - ITC allowed

(3) Capital Goods used Partly for Personal/Exempted and Party for Normal sales  - Calculate proportionate ITC