Purchase of captial good by a proprietor firm

DEAR HELPDESK,

IT IS BEING STATED THAT A PERSON IS HAVING A PROPRIETOR FIRM AND HE WANTS TO PURCHASE CAPITAL GOOD I.E. A LOADING UNLOADING MACHINERY... MY QUESTION IS THAT CAN HE CLAIM THE GST HELD ON THE PURCHASE OF THAT CAPITAL GOODS IN HIS RESPECTIVE FIRM ALSO CAN HE UTILISE THAT GST? PLUS THE PAYMENT WILL BY PAID THROUGH THE LOAN AGREEMENT...

PLEASE REVERT ON THIS SERIOUS ISSUE...

 

YOURS FAITHFULLY,

 

LOVENDEEP SHARMA

Replies (4)

It is seen from your query that person is partner in a firm.If such machinery is used for the purpose of business of firm then credit is available.

At the time of purchase, the GSTIN of the firm should be provided. 

Yes...
He can get ITC benefits for the purchase of Capital Goods if it's used in furtherance of business and his GSTIN*** in the Invoice...

***The GSTIN is must in that Invoice...
If you purchase capital goods for the purpose of business or for furtherance of business then only you claim ITC on such goods.

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