Input tax Credit on capital goods purchased before GST Registration

 An individual purchased machinery on 31 st March 2018 but got GST registration only on 10.04 2018. Is there any provision by which he could get input tax credit on capital goods ?

Answer . As per Section 18 of CGST Act 2017 person can not claim Input Tax Credit on Capital Goods Purchased before getting GST Registration certificate.

Input Tax Credit is available on  “Inputs held in Stocks ” and  not on “Capital Goods”  if person applies for GST registration within 30 days from date person becomes liable for registration.

As per Section 2(59) of CGST Act 2017 :-

“input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;

As per Section 2(19) of CGST Act 2017 :-

“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;

Relevant Portion of Section 18 of CGST Act 2017

As per Section 18(1) of CGST Act 2017 Availability of credit in special circumstances .

 

Subject to such conditions and restrictions as may be prescribed—

(a)		a person who has applied for registration under this Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act;
(b)		a person who takes registration under sub-section (3) of section 25 shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration;

GST Input Tax Credit : Topics

• Input Tax Credit in GST ( India )
• When you Can not Claim ITC under GST
• Example on Rule 5 of GST Input Tax Credit Rule – ITC on Capital Goods
• Example on Rule 7 of GST Input Tax Credit Rule – Inputs Partly used for business and partly for other purposes
• Example Rule 8 of GST Input Tax Credit Rule – Capital Goods Partly used for Business and partly for other purposes
• Example Rule 9 GST Input Tax Credit Rules – Reversal of ITC on Inputs & Capital Goods
• Video : GST Input Tax Credit wrongly availed : GST News [Part 228]
• Video : GST ITC 4 : Goods to Job Worker :GST News [ Part 166 ]
• Circular No 42/16/2018 GST : CBIC clarify recovery of arrears under existing law &; reversal of inadmissible input tax credit
• GST Manual : Steps to Use Cash/ ITC for Payment of GST Demand
• How legal heir can transfer GST ITC in new entity in case of death of sole proprietor.
• GST Refund of ITC accumulated due to Inverted Tax Structure (RFD-01A)
• How to get GST Refund of ITC paid on Exports without payment of Integrated Tax
• Receiving Intimation of ITC Blocked by GST Tax Official

GST Input Tax Credit  Free Study Material

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