Purchase of capital goods

A  Business man purchase one laptop for office use

Purchase Value

50000

CGST 4500

SGST 4500

Total Taxable Value

 

59000

Is ITC Available for This Capital goods &

Can we charge depreciation on this capital goods 

 

Replies (3)
Quick Summary
This discussion clarifies the availability of Input Tax Credit (ITC) and depreciation on capital goods, specifically a laptop purchased for office use. The response highlights that ITC is generally available, provided all conditions under Sections 16(1), 16(2), and 16(4) of the CGST Act 2017 are met. It also advises referring to Section 38 for amendments, Section 17(5) for blocked credits, and Rule 36 for ITC requirements, as well as Section 16(3) for depreciation. The importance of checking the invoice date for ITC eligibility is also stressed.

Input tax credit is available, subject following section and rules of the CGST Act 2017 

1) You have to fulfill all the conditions under section16(1)  16(2) , 16(4)of the CGST Act 2017 . 

2) you have to refer section 38 of the CGST Act  2017 amended up to 1st OCt 2025 . 

3) You have to refer section 17(5) of the CGST Act 2017 , to check blocked credit or not 

4) you have refer rule 36 if the CGST rules 2017 , and other relevant rules in respect of Capital goods  for ITC .

5) In case of Depreciation you have to refer section 16(3) of the CGST Act 2017. 

So always check everything in the Act & rules before taking input tax credit.

Also you have not mentioned when the laptop has been purchased, date and year of the Invoice?( Previou years / Current year) , which is important for input tax credit , So check that also . 

Take more Opinion on this. 

 

Purchase date 04-09-2024

Ok , So as I mentioned above you have check all the sections & rules of the CGST Act & rules 2017 related to Input tax credit, before taking input tax credit. 

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