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ITC on purchase of Capital goods under GST.

16 July 2018

I purchased a machinery /equipment on 30/06/2018 for the purpose of carrying business in my laboratory i.e Diagnostic center.
I have availed a part of input tax on purchase of those machinery as ITC for the Month of JUNE 2018.
Can I get refund of remaining input tax on purchase of capital goods ?

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4 Replies

Gaurav Palta (484 Points)
Replied 16 July 2018

Clinical establishments are usually exempt from GST and thus cannot claim any credit. please substantiate the query further to analyze.

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rajini anil (71 Points)
Replied 17 July 2018

I would like to give full clarity in respect of my doubt.
Actually it's a hospital of cardiologist and general physician having pharmacy and diagnostic lab.
The hospital status is partnership firm having two partners. The firm was registered under GST on 11/10/2017. The firm purchased the machinery / equipment for laboratory. By considering the aforesaid information, Give me a clarity on my primary(1st asked) doubt.

Verma Vishal (2 Points)
Replied 17 July 2018

no you can not get REFUND OF ITC bcz refund is allowed only in case of SEZ and INVERTED TAX STRUCTURE. Your ITC will adjusted towards your output tax

Gaurav Palta (484 Points)
Replied 17 July 2018

Since machinery is used for laboratory and since your output services of laboratory is exempt, The credit is blocked. As per law you cannot claim ITC. In case you have taken the credit you have to reverse the same and no refund allowed. However in case you buy any specific machine like AC or furniture for pharmacy then you can claim ITC on the same.