Originally posted by : RAJA P M
	Originally posted by : CA Rashmi Gandhi He already clarified earlier he used it for transport purpose. I think he is not satisfied with Your replies. So, only I came and attend this query.

Hello! It's not that I'm not satisfied. It's just that I'm not that qualified enought to understand the shorter replies. But I'm glad that Ms. Rashmi responded.

My query still remains unsolved. I'm not able to understand, if I can use this credit in my trading business without any obligation.

As you are using the truck for supplies which are exempted in GST , you are not eligible to claim ITC.

The only way is to use the truck for the purpose of providing taxable supplies.

Originally posted by : Krunal Parekh
	Hello! It's not that I'm not satisfied. It's just that I'm not that qualified enought to understand the shorter replies. But I'm glad that Ms. Rashmi responded. My query still remains unsolved. I'm not able to understand, if I can use this credit in my trading business without any obligation.

Hello,

 

If Your trading business is taxable and You are using the truck for the transportation of the trading business then You can avail the ITC.

Otherwise it's ineligible ITC...

If ineligible then it will be reversible...

Your tours & travel business fall under transport service provider. You own vehicle for transport people or goods one place to another place.

This truck is your capital investment (Capital Goods) as per CGST Act. You can't claim this GST 28% tax. It is not allowed by CGST.

You can avail depreciation on this truck more than this GST value every year at 15%. You can use total value of the truck every year. When you compare this depreciation value with GST28%. 

It is best option for you. Don't take GST input. Official issue notice and ask you to reverse the amount. It is unnecessary penalty and interest to be paid by you in future.

Originally posted by : Saravanan nagaraj
	Your tours & travel business fall under transport service provider. You own vehicle for transport people or goods one place to another place. This truck is your capital investment (Capital Goods) as per CGST Act. You can't claim this GST 28% tax. It is not allowed by CGST. You can avail depreciation on this truck more than this GST value every year at 15%. You can use total value of the truck every year. When you compare this depreciation value with GST28%.  It is best option for you. Don't take GST input. Official issue notice and ask you to reverse the amount. It is unnecessary penalty and interest to be paid by you in future.

Sir thank you for your response.

There seems to be some kind of confusion, let me give you a real example which will help understand the scenario based on which you will be able to give me more better advice.

My company name Machtig Corporation going the business of trading of spare parts and supply and having the GST no under the same name. Also I have purchase a truck Tata 1212 (7 tons payload truck) 

This truck will help me transport my own goods (a couple of times in a month) and on other days it will run under a transport company who will give me freight charges for every trip in cash.

Example: Machtig Corporation - buys goods from his supplier at Rs. 1000 per unit wherein GST input is Rs. 180. Sells at Rs. 1100 where the GST receivable will be Rs. 198.

My question is, since I have to pay the difference of Rs. 18 to the GST department. Can I pay through the credit available in CGST.

Sir please go through Sec 17(2) read with Rule 43 of GST.


Sec 17(2) states "Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies."

Rule 43 specifies the manner in which you can claim ITC for capital goods when such goods used for both taxable and exempt supplies

ITC to be distributed in 60 months and Reversal to be made every month in proportion to taxable supplies.

Yes. You are right. You have to pay GST on your profit RS.100. 

You can adjust your GST liabilities against your purchase Input Tax Credit (ITC) which is available in your GST credit ledger.

 

You can find your input tax eligibility GSTR-2B. Capital goods are also listed as ITC eligibility. But you should not claim capital goods ITC.

You should reverse ITC u/s 43 rules CGST.

Originally posted by : Saravanan nagaraj
	Yes. You are right. You have to pay GST on your profit RS.100.  You can adjust your GST liabilities against your purchase Input Tax Credit (ITC) which is available in your GST credit ledger.

Thank You for your prompt response. I hope this utilisation will not have any impact while factoring the depreciation.

Either claim ITC or depreciation. You can't enjoy both benefit. Capital goods ITC can be utilised partially every year. Now days, It is restricted and monitor by GST official. 

Demand notice issue by GST state government, until rectify this. Your GST portal login and E-way bill login are blocked. 

Please reverse it. Don't take risk. It gives you lot of stress and loss money in the name of penalty and interest at 2%.

Dear All,

I can't get Your views...

 

Why the ITC not eligible...??

 

Querist clearly said he is deal other business exept Tours and Travells...

The vehicle will be used for transportation of goods...

 

Then why...???

Dear All,

I can't get Your views...

 

Why the ITC not eligible...??

 

Querist clearly said he is deal other business exept Tours and Travells...

The vehicle will be used for transportation of goods...

 

Then why...???

I agreed for the advice for don't take ITC.

 

But, as per his business the ITC can be availed.

Input claimed as per Rule 43 and therefore he has to made calculation for 5 yearsa accordingly

The truck is a capital goods which used for business purpose as per CGST it says you can use ITC when it is used for business purpose.

But, CGST act u/s 43 rules on capital goods ITC will not be claim. If you are claim depreciation.

An assesse can't avail this both benefits. If an assesse claim ITC in GST and Taxable portion can be claimed depreciation but it was restricted by income tax too.