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ITC on Capital Goods -

06 September 2023

I purchase 1 machinery( movable) part in FY 20-21 but forget to capitalise it but claimed the ITC on the same in GSTR-3B.

Is this claim of ITC need to reverse due to non capitalisation?

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12 Replies

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 07 September 2023

Why...??
No need to reverse the ITC.

1 Like

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sabyasachi mukherjee (27117 Points)
Replied 07 September 2023

Input tax credit to reverse itc

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 07 September 2023

Originally posted by : sabyasachi mukherjee
	Input tax credit to reverse itc

Mr. Sabyasachi,

Can you give clarification for the reverse of ITC...???

sabyasachi mukherjee (27117 Points)
Replied 07 September 2023

ITC ON CAPITAL GOODS CAN BE CLAIMED IF USED FOR THE PURPOSE OF BUSINESS OR NOT.
rajA

Mr. raja pm never create sundry debtors account when asset are sold because always those income are segregated from main income. Though I hv consented to that.its not very correct.
So remember you hv a wrong conception. Disclosure of such income is separate in Pl account and balance sheet.
NOW

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 07 September 2023

Mr Sabyasachi,

Better to read what is ITC, What is capital goods, what is furtherance of business, What is GST ITC, what/when/which condition reverse the ITC....

After that come back with minimum knowledge... Flat read not possible to act professional...

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NINAD TARALEKAR (110 Points)
Replied 07 September 2023

This capital goods are in the furtherance of business & also not restricted under Section 17(5). Just because its not capitalised , nodal officer forcing to reverse the ITC. As per his view if the asset is capitalised , shown in balance sheet then only eligilble to claim ITC.

sabyasachi mukherjee (27117 Points)
Replied 07 September 2023

First read then react. I am quite aware of these facts.

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 07 September 2023

Originally posted by : sabyasachi mukherjee
	First read then react. I am quite aware of these facts.

Sssss I know Your aware...

1 Like

Rajendra Prasad (Employee Private) (1838 Points)
Replied 08 September 2023

No need to reverse the ITC. Its a part of Machinery, and no where else written that to capitalize in GST Act. Also if, we have not capitalized any Plant and machinery it is not required to reverse the ITC.

sabyasachi mukherjee (27117 Points)
Replied 09 September 2023

The queries has not mentioned whether it's put to use or not.
ssss if you do not know do not comment.

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RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 09 September 2023

Originally posted by :
	The queries has not mentioned whether it's put to use or not.ssss if you do not know do not comment.

Wowww what a logic dearrr...

Yesssss, I forgot it the machinery put to use or not since FY 20-21, FY 21-22, FY22-23, FY23-24...

Ohhh God I really forgot it, still it's not put to use...

Thanks for the remaining part of this...

1 Like

Suresh Kumar (Account) (403 Points)
Replied 12 September 2023

Capitalisation is only restricted on construction services in terms of renovation, alterations etc.

Due to nocapitalisation of machinery, ITC needs not to be reversed. ITC can be availed subject to fulfillment of all other conditions of Section 16 of CGST