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ITC on Capital goods

ANJANI KUMAR (INTER+CPT) (115 Points)

13 June 2018

A generator (DG set) has been purchased for the purpose of business...And transportation charges also separately invoiced....

how to claim ITC ...whether on full or ITC ÷ 60

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4 Replies

C.M. SARAVANAN (ADVOCATE /TAX CONSULTANT) (53 Points)
Replied 13 June 2018

we can ITC 100%

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 13 June 2018

you can avail full ITC

Vinod Babu (24191 Points)
Replied 13 June 2018

Yes you can take ITC when used for business purpose.
As per Section 2(19) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term 'capital goods' means goods, the value of which is capitalized in the books of accounts of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

For taking ITC., following should also be satisfied

1. Gst registration should be regular type
2. Invoice bill should bears the company name & Gstin
3. Gst bill should be of B2B

2 Like

Deepak (student) (36 Points)
Replied 13 June 2018

Yes you can claim full ITC at the time of purchase of generator... But if you sold that capital asset before the expiry of 5 years The ITC Shall be reverse to the Department On the basis of Turnover.