Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Itc on capital goods under gst

ITC / Input 482 views 6 replies

Pradeep kumar T V

Ops Executive

87 Points Posted on 22 February 2019

Hi All,

Good afternoon and have a great day ahead!

I would like to know, if a co. purchase capital goods (ex. furniture/computer) for office use, can the co. is eligible to take ITC for purchase of capital goods?

If Yes, please confirm with under which section of GST gives clarification for the same.

With advance thanks

Pradeep Kumar T V

Replies (6)

CA Naveen Chand

Chartered Accountant

12739 Points Posted on 22 February 2019

yes you can claim gst inputs all in once on capital goods

CA Naveen Chand

Chartered Accountant

12739 Points Posted on 22 February 2019

subject to use of furtherance of business .

pritesh

CA Final student

7106 Points Posted on 22 February 2019

yes You can claim itc please refer section16 cgst act

Anshuman Basu

account -GST

1560 Points Posted on 22 February 2019

u will get ITC. but if u claimed deppreation the whole amount of the bill i.e. inclusive tax then u will not claim ITC.

ITC is available on capital used in the course of furtherance of business. but the depreciation on ITC element will not be available and if you sell the goods within a short period then the respective amount of ITC should be reversed.