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Can we claim ITC on capital goods

saurabh jain (manager) (174 Points)

08 November 2017

Kindly confirm along with section under which can we claim ITC on capital goods purchase for our factory like as.
1. CCTV cameras along with DVR.
2. LABOUR ATTENDENCE BIOMETRIC MACHINE

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12 Replies

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 08 November 2017

Yes you can take credit on everything except items given in negative list. e.g. food items etc.

1 Like

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Purnima Sharma (14 Points)
Replied 08 November 2017

Yes, You can take credit

1 Like

saurabh jain (manager) (174 Points)
Replied 08 November 2017

thanks sir, can you share link for negative list and it means all capital goods are applicable for itc in GST regime

Ramanuj (Accountant.) (834 Points)
Replied 08 November 2017

Yes you can claim

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 08 November 2017

INPUT TAX CREDIT OF MOTOR VEHICLES

NATURE OF BUSINESS	NATURE OF VEHICLE	ITC CLAIM
Dealer of Motor Vehicle	Any Vehicle	Full ITC can be claimed
Passenger Transportation	Vehicle used for Passenger Transportation Any Other vehicle	Full ITC can be claimed ITC cannot be claimed
Training relating to driving of such vehicle	Vehicle used for training Any other Vehicle	Full ITC can be claimed ITC cannot be claimed
Any other business	Vehicle used for transportation of goods Any other vehicle	Full ITC can be claimed ITC cannot be claimed

INPUT TAX CREDIT ON OTHER ITMES

NATURE	ITC CLAIM	EXCEPTIONS
Food & Beverages	ITC cannot be claimed	If engaged in similar line of business, then Full ITC can be claimed on these items
Outdoor catering	ITC cannot be claimed
Beauty treatment services	ITC cannot be claimed
Health services	ITC cannot be claimed
Cosmetic and plastic surgery	ITC cannot be claimed
Rent a cab service	ITC cannot be claimed	If engaged in similar line of business or there is mandatory requirement from government to provide such services by employer to employee then full ITC can be claimed on these items
Life Insurance service	ITC cannot be claimed
Health Insurance service	ITC cannot be claimed
Membership of a club, health & fitness Centre	ITC cannot be claimed	No exception
LTA benefit extended to employees	ITC cannot be claimed	No exception
Construction Contract Services for construction of immovable property	ITC cannot be claimed	If engaged in similar line of business, then Full ITC can be claimed on these items
ITC on goods and services used for self-construction of building cost of which is capitalized in books	ITC Cannot be claimed	No exception

Copied from: https://www.karnanica.com/2017/07/12/negative-list-of-input-tax-credit-in-gst/

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B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 08 November 2017

Yes,you can claim INPUT if they are used for business purposes

M R Ravi (59 Points)
Replied 09 November 2017

Is the input on capital goods used for taxable supply be claimed immediately or should be taken by spreading over 60 months

Avinash Kumar (CA-Final Students) (192 Points)
Replied 09 November 2017

Yes, Now, You can claim ITC on capital goods.

VIKAS SAINI (1163 Points)
Replied 21 November 2017

Can we take the input on capital goods completly itc or partial. Even machine is fully business use and also keep in original invoice

Earlier law itc on capital good 50:50for two year

javed (Accountant) (22 Points)
Replied 01 February 2018

sir our client business is tours & travels, he purchase tourist vehicle for business so he can take the ITC input on capital goods completly in one month or 60 month division of GST

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Babajan (Accountant) (69 Points)
Replied 17 May 2018

can we claim credit on cement which is used for machinerey foundation

dattaraj (article) (22 Points)
Replied 09 July 2018

Sir,

If we can claim all capital goods credit in gst regime the, can we claim Input tax credit on Car where it is capital asset and purchased for business purpoes. here assesse is not in business of transport or travelling. he is in business of trading and services.

Thanks