My query is related to ITC on capital goods.
We know that as per GST act , we may only claim 5% credit per quarter ..ie. 20% per year spread out over 5 years.
Now how should our working be shown in 3b ?
1 - Should we add proportionate GST credit every month in 'all other ITC' in 3b... Or
2 - Should we take all of the credit in first month but not utilize the balance against GST liability. Ie..keep credit in ledger but don't use it to offset liability. Or
3 - Should we take all of the credit in 'all other ITC' in 3b and then reverse the ineligible amount....Then take proportionate amount every month by reversing the earlier ineligible amount.
CAclubindia
