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.
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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