Hi
I want to know whether input tax on furniture purchased for display of taxable goods from local dealer in punjab can be claimed under Capital goods or not?
Under rule 53 of MVAT Act, A reduction of 3% will be made on purchase price & the remaining input tax credit will be available for set-off.
Please refer to your state VAT Law for clarification.
Regarding about capital goods, as you have said that furniture is used for the display purpose only it will be assumed as capital goods as it will not be subsiquently sold.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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