Hope anyone clear this.
If a firm purchased capital goods like air conditioner, fans, etc, can it be eligible to claim ITC at a time on those goods in the month when those goods are purchased, in form GSTR3B? OR has it to be claimed over a period of 5 years? And if it has to be claimed over a period of 5 years, what is the procedure for the same to make it reflect in GSTR3B over a period of 5 years.
Thankyou.
Capital goods are assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services. Goods will be regarded as capital goods if the following conditions are satisfied:
(a) The value of such goods is capitalised in the books of account of the person claiming input tax credit;
(b) Such goods are used or intended to be used in the course or furtherance of business.
When you purchase anything, you are required to pay GST on it. Later, you can claim input Tax Credit on the GST paid on your purchases. SImilarly, when you are purchasing any Air Conditioner for your factory, you will pay the applicable GST rate. This GST paid can be claimed as credit in the same way as inputs. However, if you claim depreciation on the GST paid while purchasing the capital asset, you cannot claim input tax credit.
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