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Manner of taking ITC on plant and machinery

Hitesh Gupta (75 Points)

03 July 2018

can anyone please tell me what is the manner of taking itc on plant and machinery of Pvt LTD company.

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10 Replies

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 03 July 2018

Hi,

Once you receive goods, you mail claim 100% input subject to fulfilling other condition of input tax credit.

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Hitesh Gupta (75 Points)
Replied 03 July 2018

but we can take in installments right?

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 03 July 2018

if you want, you may take but only in next three month. From Oct onward, input credit will be automatically calculated by the portal.

Vinod Babu (24191 Points)
Replied 03 July 2018

You can take full ITC on plant and machinery at one time itself.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 03 July 2018

You have to book full ITC on same (as reflected in your GSTR2A)

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Hitesh Gupta (75 Points)
Replied 03 July 2018

but in capital goods we have to divide it by 5 years and have to take monthly only right?

Law Aspire (CS) (755 Points)
Replied 03 July 2018

No Clarity is coming from the answers .
Please give some clear opinions

Hitesh Gupta (75 Points)
Replied 03 July 2018

on capital goods ,we have to take itc in installments i.e.,till 5 years and not 100% at once

Vinod Babu (24191 Points)
Replied 03 July 2018

Capital Goods used for normal sales

XYZ has purchased machinery to manufacture shoes. Since, shoes are normal taxable supplies, the GST included paid while purchasing machinery will be completely available as ITC. This shall be indicated in FORM GSTR-2 and shall be credited to the electronic credit ledger.

C. Common credit for partly personal/ exempted and partly normal sales

The ITC paid for the capital goods will be credited to electronic credit ledger

Useful life of such capital asset will be taken as 5 years from the date of purchase

Now the total amount of input tax credited to electronic credit ledger for the whole useful life will be distributed over the useful life

The useful life will be taken as 5 years.

Law Aspire (CS) (755 Points)
Replied 06 July 2018

Originally posted by : Vinod Babu
	Capital Goods used for normal salesXYZ has purchased machinery to manufacture shoes. Since, shoes are normal taxable supplies, the GST included paid while purchasing machinery will be completely available as ITC. This shall be indicated in FORM GSTR-2 and shall be credited to the electronic credit ledger.C. Common credit for partly personal/ exempted and partly normal salesThe ITC paid for the capital goods will be credited to electronic credit ledgerUseful life of such capital asset will be taken as 5 years from the date of purchaseNow the total amount of input tax credited to electronic credit ledger for the whole useful life will be distributed over the useful lifeThe useful life will be taken as 5 years.