regarding plant & machinery ITC

Yes, you can claim ITC over 60 momths i.e 5 years.

If your outward supply is only of taxable supply, then you can claim ITC fully in current tax period. Hence, you should take ITC in GSTR 3B normally as you take in other cases.

Even though you are doing outward supply Exempted , the ITC on capital goods has to be claim Fully in One shot .
Has to reverse the ITC on monthly basis on sale attributable to exempted. (As per Rule 43)

But as the querist outward supply is not exempted hence No need to Reverse the same

ITC on capital goods cannot be claimed fully in one period.

It has to be claimed over 60months.

Ruchika ji

itc has been to claimed on capital goods in one shot.

the 60 months condition is only for reversal


@ srini sir

pls follow pankaj sir answer.

Whomsover need any more clarification & Explanation .... kindly refer Rule 43 CGST Act

As per GST Law, If capital goods are used in business purposes  you may claim 100%  credit. If your capital goods are used exclusively for non business purposes shall not be eligible for credit.

 

Further, if your capital goods are partly used for the purposes of business and partly for other purposes the information is given below.

 

1. Subject to the provisions of sub-section (3) of section 16, the input tax credit in respect of capital goods, which attract the provisions of sub-sections (1) and (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,- 
   (a) the amount of input tax in respect of capital goods used or intended to be used exclusively for non-business purposes or used or intended to be used exclusively for effecting exempt supplies shall be indicated in FORM GSTR-2 and shall not be credited to his electronic credit ledger; 
   (b) the amount of input tax in respect of capital goods used or intended to be used exclusively for effecting taxable supplies including zero-rated supplies shall be indicated in FORM GSTR-2 and shall be credited to the electronic credit ledger; 
   (c) the amount of input tax in respect of capital goods not covered under clauses (a) and (b), denoted as ‘A’, shall be credited to the electronic credit ledger and the useful life of such goods shall be taken as five years: 
   Provided that where any capital goods earlier covered under clause (a) is subsequently covered under this clause, the value of ‘A’ shall be arrived at by reducing the input tax at the rate of five percentage points for every quarter or part thereof and the amount ‘A’ shall be credited to the electronic credit ledger; 
   (d) the aggregate of the amounts of ‘A’ credited to the electronic credit ledger under clause (c), to be denoted as ‘Tc’, shall be the common credit in respect of capital goods for a tax period: 
   Provided that where any capital goods earlier covered under clause (b) is subsequently covered under this clause, the value of ‘A’ arrived at by reducing the input tax at the rate of five percentage points for every quarter or part thereof shall be added to the aggregate value ‘Tc’; 
   (e) the amount of input tax credit attributable to a tax period on common capital goods during their residual life, be denoted as ‘Tm’ and calculated as:- 
   Tm= Tc÷60 
   (f) the amount of input tax credit, at the beginning of a tax period, on all common capital goods whose residual life remains during the tax period, be denoted as ‘Tr’ and shall be the aggregate of ‘Tm’ for all such capital goods. 
   (g) the amount of common credit attributable towards exempted supplies, be denoted as ‘Te’, and calculated as: 
   Te= (E÷ F) x Tr 
   where, 
   ‘E’ is the aggregate value of exempt supplies, that is, all supplies other than taxable and zero rated supplies, during the tax period, and 
   ‘F’ is the total turnover of the registered person during the tax period: 
   Provided that where the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of ‘E/F’ calculated by taking values of ‘E’ and ‘F’ of the last tax period for which details of such turnover are available, previous to the month during which the said value of ‘E/F’ is to calculated; 
   Explanation: For the purposes of this clause, the aggregate value of exempt supplies and total turnover shall exclude the amount of any duty or tax levied under entry 84 of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule; 
   (h) the amount Te along with applicable interest shall, during every tax period of the residual life of the concerned capital goods, be added to the output tax liability of the person making such claim of credit. 

Ruchika Somani • 19 January 2019

Yes, you can claim ITC over 60 momths i.e 5 years.

Kamal Jain • 19 January 2019

If your outward supply is only of taxable supply, then you can claim ITC fully in current tax period. Hence, you should take ITC in GSTR 3B normally as you take in other cases. your team said regarding input on capital goods that told as different which one correct