Input credit on capital goods

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DEVI SINGH PARIHAR (Querist)
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28 May 2018 IF PLANT & MACHINERY ARE PURCHASES FOR MANUFACUTINRG OF CATTLE FEEDS (GST EXEMPT GOODS) WHETHER WE CAN TAKE INPUT CREDIT ON PLANT & MACHINERY OR WE HAVE TO REVERSE THE INPUT TAX CREDIT IN GSTR-3B AND UNDER WHICH COLUNM WE HAVE TO REVERSE THE INPUT CREDIT IN GSTR-3B.PLS REPLY

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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28 May 2018 Capital goods exclusively used for manufacture of exempted goods are not eligible for ITC. The ITC on such capital goods shall be disclosed in Table 4 (D) of Form GSTR-3B- Ineligible ITC - (2) Others

In case where the capital goods are used for manufacture of both taxable and exempted goods then the proportionate credit has to be reversed as per Section 17(2) of CGST Act read with Rule 43 of CGST Rules. The amount of ITC subsequently reversed shall be disclosed in Table 4 (B): ITC Reversed - (1) as per Rule 42, Rule 43 of CGST Rules in the form GSTR-3B.

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