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ITC on Machinery Purchased

Shoeb Hasan (81 Points)

14 January 2019

i have purchased a machine for rs. 150000.00 + 18% gst = 177000.00
can i claim itc ? if yes then on what conditions?

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7 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 14 January 2019

It is a capital asset and will be used to produce final outputs right?

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Shoeb Hasan (81 Points)
Replied 14 January 2019

yes it is a capital good

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 14 January 2019

Then GST credit will be divided over 5 years i.e 60 months and taken every month till 60 months only if goods produced are of nature which are fully taxable

Sanjiv Rajpoot (3430 Points)
Replied 14 January 2019

YES u can claim ITC if u used the machinery in course of furtherarnce of business

But if you are exporter and supply made through payment without tax

then u can not cliam itc of capital goods

MACHINERY use for output supply if u are sale before 5 yaer than required reverse itc

IF u are made supply of exempt then u can not claim itc

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jaheer hussain (577 Points)
Replied 14 January 2019

yes you can claim ITC for machinery purchase for business uses

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NITIN KOTAK (SERVICE) (1465 Points)
Replied 14 January 2019

yes you can claim full whole ITC , in single shot, only one condition to avail such ITC, produced taxable supply including zero rated(export).

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pritesh (CA Final student) (7101 Points)
Replied 15 January 2019

Ruchika ji,
we can claim itc on capital good in single shot.

the condition for 60 month is only for reversal. when you use both foe excempted and taxable goods

1 Like