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ITC on capital goods

Is ITC not available on capital goods where exempt supplies becoming taxable? As per book it is available but a question form test your knowledge,where the above scenario exists doesn't give ITC on capital goods. Please refer to the attached photos for reference and clarify.

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lithish kumar

lithish kumar

CA Inter

1K+

04-Apr-21 07:54

32

Answers (2)

Best Answer

Section 18(1)(d) applies only if exempt supply by a registered person becomes taxable supply In this question the person is unregistered person so section 18(1)d will not apply but Section 18(1)(a) will apply As per section 18(1)(a), credit cannot be claimed on capital goods We covered this point in our classes


Suraj Lakhotia

Suraj Lakhotia

Admin

05-Apr-21 15:28

Provision from the material

Attachments

d315328e-4041-49b7-bffe-5116697f262b.jpg


lithish kumar

lithish kumar

CA Inter

1K+

04-Apr-21 07:56