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ITC on capital goods

Rupesh Soni (Taxation Consultant & CA final student) (493 Points)

23 February 2019

i buy Laptop Rs 30000 plus 5400Rs gst....on 15 th feb 2019
now how i treat GST credit on capital goods?in books
guide me Journal entries...

effect on gstr return

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5 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 23 February 2019

Dr. Laptop A/c

Dr. GST Input A/c
(CGST & SGST or IGST, as the case may be)

Cr. XYZ A/c
(from where you purchased)

GSTR-3B: Table 4 Eligible ITC
(A)(5) All other ITC

Seller will file the invoice details in his GSTR-1

prasad Nilugal (3909 Points)
Replied 23 February 2019

you can not claim depreciation as per 16(3) of the CGST act 2017 ,if you are claiming input tax credit for asset use for furtherance of Business.

nayab (Sr.Officer Accounts ) (250 Points)
Replied 26 February 2019

if capital value 30k you can take itc 5400/-

if you take total capital value 35400/- itc not eligible.

Rupesh Soni (Taxation Consultant & CA final student) (493 Points)
Replied 27 February 2019

full credit availble in feb???or in inatallment

Deepak Gupta (CA Student) (15922 Points)
Replied 27 February 2019

Credits for capital goods are available in full.

There is no provision stipulating availment of capital goods credit in instalment or tranches.

Further, if the tax payer claims depreciation of the tax component in the value of capital goods under the provisions of Income Tax Act, then credit is not allowed on such tax component of capital goods.