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Why is ITC not available for capital goods in this case?

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Priyanka Udeshi

Priyanka Udeshi

CA Inter

6K+

19-Mar-21 02:54

33

Answers (4)

Best Answer

Goods*

Section 18(1)(d) which states " The registered shall also be eligible to take Credit on capital goods exclusively used for such exempt Supply. Credit on capital goods shall be reduced by 5% for every quarter or part thereof, from the date of issue of invoice for the capital goods" But in the present case Babla Enterprises is an unregistered person..... and sec 18(1)(d) is only for registered persons.


sudha reddy

sudha reddy

Moderator

22-Mar-21 16:30

No ITC is available for personal purchases or for capital goods used in exempted sales. This will be indicated in FORM GSTR-2 and shall not be credited to the electronic credit ledger.


sudha reddy

sudha reddy

Moderator

19-Mar-21 10:24

No ITC is available for personal purchases or for capital goods used in exempted sales. This will be indicated in FORM GSTR-2 and shall not be credited to the electronic credit ledger.

But ma'am if gooda which were exempted earlier and now become taxable we get itc on capital goods right? So why not here?


Priyanka Udeshi

Priyanka Udeshi

CA Inter

6K+

21-Mar-21 00:52

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