Before GST We capitalized 100 % Fixed asset Including Service tax and Vat and charge depreciation on the same but we din not take any input of Service tax Vat on it.
Now In GST If i purchase something like Computer Rs 100000/- Gst 18000/-
If i am not going to take GST input and Capitalized full amount 118000 in the book and starting to charge depreciation on it. so this method is correct
should i Take input of GST 18000 and Charge depreciation on 100000
Which method is correct in Indian accounting?
Both the method are correct.
GST Law only tells that, if depreciation is charged on GST amount, then GST input can not be taken.
As per GST rules, input tax credit on fixed assets is available if you are not capitalising GST part and availing depreciation under Income tax act.
So, you can choose any one method. Either you should take input tax credit without availing depreciation benefit under income tax act or take input tax credit without availing depreciation benefit.
Further you can avail complete input tax credit on purchase of fixed assets in a single month instead of 50% like earlier laws.
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