Can we claim full ITC on capital goods in Ist Year which is to be used for manufacturing and for business furtherance. The details of Capital Goods are given below :-
1) Machine used for Manufacturing 2) Computer used for maintaining GST records etc. 3) Office Chair & Almirah & some other office furniture. 4) Mobile phone only used to talk to business related communications. 5) Lorry used to Inward & outward of materials. 6) Any repair & maint. charges on above i.e. Lorry tyres, machine damaged parts etc.
15 June 2018
Credit can be taken in all the above inward supplies, since the same are not covered under blocked credits prescribed under Section 17(5) of CGST Act. Input tax credit on capital goods also allowed 100% in the year of acquisition under GST. If the above inward supplies are used for both taxable and exempted/personal use then proportionate credit need to be reversed. Otherwise full input tax credit can be claimed.
CAclubindia
