ITC on Capital Goods

 GST paid on capital goods can be claimed as credit in the same way as inputs. However, if you claim depreciation on the GST paid while purchasing the capital asset, you cannot claim input tax credit.

Normally cost of capital goods is High and tax credit also high, did you mean whatever amount of ITC can be claimed in the year of purchase only irrespective of amount involved in ITC. Am I right

agree with ca chirag sir

@ Mr Vinod lohar.,


You can claim ITC in single take at the time of Purchase of CG. No more restrictions as You said that 5years calculation.

ITC can be fully claimed in one shot...

Thank you so much

When you purchase anything, you are required to pay GST on it. Later, you can claim input tax credit on the GST paid on your purchases. SImilarly, when you are purchasing any machinery for your factory, you will pay the applicable GST rate. This GST paid can be claimed as credit in the same way as inputs.

However, if you claim depreciation on the GST paid while purchasing the capital asset, you cannot claim input tax credit