Gst input credit on purchase of used machinery by exporter

This query is : Resolved

GOPAL SHARMA (Querist)
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15 May 2018 DEAR Team Member,

We are Exporter & we have purchase Old machinery to run our factory. some of machines are more than five year old.

Requesting you to please share your best views on following quarry :-

1) As per GST Rules, We have to claim GST input tax Credit on caplital goods in 60 Month (5 years) but in our case some of our machies are already 5 year old, should we claim full credit or claim input credit/60 Month ?

2) should we claim Input Tax Credit full in one year or 1/5

3) How to show in gstr - 3b :- All other ITC - Should we show full input tax credit amount or input tax credit/60
(Example - Input Tax Credir - 100)
:- ITC Reversed : As per rules 42 & 43 - Should we reverse input tax credit balance
pending for 4 years ((Example - Input Tax Credit - 80)

Please share your valuable feedback at the earliest.

RAJESH KUMAR KHANDELWAL

RAJESH KUMAR KHANDELWAL (Expert)
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15 May 2018 Answer to your following quarry :-
1) As per GST Rules, We have to claim GST input tax Credit on caplital goods in 60 Month (5 years) but in our case some of our machies are already 5 year old, should we claim full credit or claim input credit/60 Month ?

Ans. Kindly refer section 16(2) of CGST Act 2017, you can take all ITC on capital goods in the year of purchase.

2) should we claim Input Tax Credit full in one year or 1/5 3)

Ans. Yes, you can claim full ITC in one year.

How to show in gstr - 3b :- All other ITC - Should we show full input tax credit amount or input tax credit/60 (Example - Input Tax Credir - 100) :- ITC Reversed : As per rules 42 & 43 - Should we reverse input tax credit balance pending for 4 years ((Example - Input Tax Credit - 80)

Ans. You can claim full ITC in the GSTR-3B as per condition given in section 16(2) . No need of reversal.