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Please help me out !! itc capital goods

Shabeer Cr (60 Points)

29 April 2018

cam anyone explain the process of claiming itc on capital good please

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 29 April 2018

No more special process...
If You are used in furtherance of business and it's eligible is based on GST then You can claim ITC for the Capital Goods...

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CA Rashmi Gandhi (Chartered Accountant) (86485 Points)
Replied 29 April 2018

You can claim ITC on capital goods immediately... No other special procedure....

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 29 April 2018

U can avail total ITC on capital goods on the same month,. But have to reverse the ITC attributed to exempted supply if any provided

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Shabeer Cr (60 Points)
Replied 29 April 2018

what to do while filing ?

ARS BHARATHI (Executive in gst department) (274 Points)
Replied 29 April 2018

if you are in possession of capital goods meant for further useog your business along with the invoice take full credit in your books of accounts and show in the gstrb under ITC column

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 29 April 2018

Shabeer ji

The capital goods u bought is being used in the product u sell out ???, or any exempted services u are providing by using that cpaital goods ?? can plz clarify

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Mr. Singh (497 Points)
Replied 29 April 2018

What about the rule to claim ITC on capital goods in 5 years ?

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 29 April 2018

As Rule 44
As per the act the assume life of capital goods is 5yrs

When capital asset sold before 5 years , the itc avail & gst payble on the same is calculated as below

Let us understand with an example:-

Assets used 4yr + 6monts 15 days which is count to be 4yrs+7months (months remaining 5month un used )
Purchasing Value of Assets is Rs 50,000 + 18% of GST is (9000) = Total Value of Asset is Rs 59,000, ITC Taken = Rs 9,000

Formula : ITC X months remain / 60

So ITC of balance useful life = 9000*5/60 = Rs 750 (Amount)

Let’s assume actual consideration amount is Rs 4000. Tax calculated = 4000*18% = Rs 720 (Tax Amount)

Now comparison of Amount and Tax i.e., Rs 750 and Rs 720 respectively. The amount is higher as compared to taxes. However, the registered person under GST will have to pay Rs 750 and should be furnished in GSTR- 1 Form. Therefore, it is necessary to prepared tax invoices in this case with invoice amounting Rs 4000 plus 750 is equal to Rs 4750. However, taxable value to be furnished in the invoice, as well as GSTR – 1 Form, will be Rs. 4167. (4167 × 18%=750)

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