watch_later 19/02/18

How should ITC on capital goods be utilise?

ITC on capital goods to be utilise for 60 months i.e. 5years. If suppose i purchase capital goods like machinery of ITC 6000/- out of which I'm allowed to take only 100/- per month (6000/60) remaining ITC for next 59 months. So if i have to take only 100/- for every month than what about 5900/- to be done in GSTR 3B? As we cannot offset liability payable without utilising all available ITC and pay through cash ledger.

Do we need to reverse 5900/- in GSTR 3B for first month and add back in next months return to all other ITC and reverse back 5800?

Thanks in advance.

1 Response | Latest response: 19/02/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 19/02/18

Under GST you can take input credit on capital goods in same month you purchase them.

There is no requirement to utilise credit over 5 years.

Once you purchase a capital asset, you become eligible to take input credit.


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