How to differentiate Capital goods with Sin or De-Merit Goods?

Posted on 11 June 2022 Category : GST terms difference

Difference between Sin or De-Merit Goods and Capital goods under GST terms

What is Capital goods? How does Sin or De-Merit Goods work under GST regime? What are the difference between Capital goods and Sin or De-Merit Goods?

Under GST system, the following information explains about Capital goods and Sin or De-Merit Goods.

As per GST terms, Capital goods means goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business where as Sin or De-Merit Goods means the name suggests, in economics, demerit goods are "goods or services whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on consumers themselves".

The details about Capital goods and Sin or De-Merit Goods with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Capital goods and Sin or De-Merit Goods, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, we give below web links on Capital goods and Sin or De-Merit Goods separately below. You may kindly read the below links to know more about Sin or De-Merit Goods and Capital goods.

What is Capital goods under GST

What is Sin or De-Merit Goods under GST

The above information easily explains about Sin or De-Merit Goods and Capital goods.

We hope, you have satisfied with the difference between Capital goods and Sin or De-Merit Goods explained above. Do you have different thought on difference between Sin or De-Merit Goods and Capital goods?

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Recovery of tax, Section 79 of CGST Act, 2017