Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

GST disallow and Capitalising of asset

606 views

Save Share

Bhavesh

Accounts

141 Points Posted on 25 May 2024

Hello friends in year fy 23-24 we have purchased FA of which certain FA GST has been disallowed. so we decide to capitalise the GST amount with asset. so I'm that case which entry has to be passed for GST disallow, for Capitalising of asset and whether depreciation can be claimed as we have already paid to the party. reply on above query is awaited.

Replies (2)

Quick Summary

This discussion addresses the treatment of disallowed GST on fixed asset purchases in FY 23-24. The consensus is that disallowed GST should be capitalised as part of the asset's cost. Consequently, depreciation can be claimed on the total asset value, including the capitalised GST, as input tax credit was not availed.

CA Anoop Kumar Sharma

Accounts Manager

1470 Points Posted on 25 May 2024

For Immovable Assets, GST input credit is not allowed. When fixed assets are purchased, GST is paid, and depreciation must be calculated on the total cost, including GST.