Is Input Tax Credit for Capital Goods permitted under GST in India?

Is Input Tax Credit for Capital Goods permitted under GST in India?

Is Input Tax Credit for Capital Goods permitted under GST in IndiaWhere goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?

As per section 16(5) of GST Law, the input tax credit of goods and / or service attributable to only supplies effected for business purpose can be taken by registered taxable person. The amount of eligible credit would be calculated in a manner to be prescribed in terms of section 16(7) of the GST Law read with GST ITC Rules (yet to be issued). It is important to note that credit on capital goods also would now be permitted on proportionate basis.

 

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Comments


rudra: Dear Sir, Sir We are In a Hiring Business (genset) My Question is may if Take In put Of Newly Purchase Dg Set in Same Month

SITARAM KRISHNA PATIL: We exited /de-bonded from EOU status on 21.08.2015 and duty liability is Rs. 7,01,84,181/- and export obligation is 42,11,05,086/- under 0% duty EPCG scheme . Now we have decided to pay the duty liability by cash after 2 years.We are also ready to pay the applicable interest on the above duty liability. In this matter please let us know whether we can take / avail credit of this amount as Input Tax Credit (ITC) under GST rule 2017 and utilise the same for payment of GST amount for clearance of goods from our factory. Your reply in this matter is requested.

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