Ramandeep Singh (Article) (40 Points)
13 June 2017
Preeti (Team_GSTSoln)
(Team GST Experts)
(1926 Points)
Replied 13 June 2017
no if capital goods purchased is exempted under existing law, then no itc available to carry forward. for more info https://www.gstsoln.com/all-about-transitional-provisions-us-140-compiled-with-relevant-rules-in-general-language-from-business-point/
Ramandeep Singh
(Article)
(40 Points)
Replied 14 June 2017
Preeti (Team_GSTSoln)
(Team GST Experts)
(1926 Points)
Replied 14 June 2017
Ramandeep Singh
(Article)
(40 Points)
Replied 14 June 2017
Preeti (Team_GSTSoln)
(Team GST Experts)
(1926 Points)
Replied 14 June 2017
Ramandeep Singh
(Article)
(40 Points)
Replied 14 June 2017
https://cleartax.in/s/itc-rules-capital-goods-gst ( Refer Point E from link ).
(this point is still create confusing)
E. Where a capital good which was earlier used or intended to be exclusively used for:
Later to be used commonly for:
Input tax to be credited to electronic credit ledger would be:
= Input Tax – 5% of Input tax for every quarter or part thereof
Let us understand the situation through an example
Mr. Avinash bought a Capital Good intended to be used for effecting exempt supplies only, for Rs 1,00,000/- paying Rs 18,000 as input tax on 01/04/2017 and now on 15/11/2018 he wishes to use the capital good commonly for taxable and exempt supplies.
Now the eligible common input tax credit will be calculated as follows
= Input Tax – 5% of Input tax for every quarter or part thereof
= 18,000 – 5% of 18000 * 3 quarters
= 18,000 – 2,700
= 15,300
Now Mr. Avinash will credit Rs 15,300 to Electronic Credit ledger and follow the steps shown in point D to calculate the input tax attributable to exempt supplies out of common credit
Anil
(CEO)
(27 Points)
Replied 30 June 2017
A manufacturer producing excisable goods but availing excise exemption (below 1.5 crore), purchases a machine for production of these goods in 16-17. He has taken input VAT credit in 16-17. Now under GST he wants to claim the component of excise paid on the machine as he will be producing goods which attract GST. Please tell procedure, forms, % of credit possible.
Lalit Nagpal
(Assistant Manager)
(541 Points)
Replied 30 June 2017
Section 18(1)(d) where an exempt supply of goods or services or both by a registered person becomes a taxable supply, such person shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable. Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed.
Section 16(3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed.
Preeti (Team_GSTSoln)
(Team GST Experts)
(1926 Points)
Replied 30 June 2017
RAMANDEEP THIS EX RELATES TO MACHINERY USE IN GST REGIME, AND YOU ARE ASKING FOR TRANSITION PERIOD. BOTH ARE TOTALLY DIFFERNT
Preeti (Team_GSTSoln)
(Team GST Experts)
(1926 Points)
Replied 30 June 2017
ANIL HE CANT TAKE EXCISE COMPONENT OF MACHINERY
Anil
(CEO)
(27 Points)
Replied 01 July 2017
Section 18(1)(d) where an exempt supply of goods or services or both by a registered person becomes a taxable supply, such person shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable. Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed.
1) I would like to confirm whether a machine which was purchased in 16-17 for which excise was paid but not claimed under senvat credit as the manufacturer was availaing SSI exemption. the machine was used for manufactur of exempt goods on the day immediately preceding the date of implematation of GST. The goods are taxable now in GST (IGST + SGST).
2) Further what will be reduction in ITC for machine purchased in Nov 2016 and installed in Feb 2017, comissioned in June 2017. The ITC of VAT already claimed in 16-17. The depreciation is claimed on basic cost excluding Excise and VAT.
CAclubindia
