Claim of gst input on capital goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2018 Dear All,

Our company is engaged in the production of taxable and non taxable goods under excise regime. We have not claimed input on Machinery which are exclusively used for manufacture of exempt goods.

Now in the GST regime, the same exempt goods became taxable. Now my doubt is, whether we claim the input on capital goods which were not claimed earlier in the excise regime(due to production of exempt goods) in the Tran 1 by reducing 5% every quarter ?

Thanks in advance,

Udaya Chandran

Udaya Chandran (Expert)
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08 December 2018 As per proviso in Section 140 (2), CENVAT can be availed under GST on capital goods only when the same was admissible as credit under the existing law as well as GST Act. As per my opinion, you can take ITC in this case.