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Question ID : 38149


Whether GST Input on capital goods can be taken in a single month or 60 Installments? 60 Installments applicable only when there is exempted turnover is there i.e., 42 or 43 rule? Also if we have to take on installment basis, while filing GSTR 3B liability is not offsetting with IGST when CGST and SGST credit available for payment of CGST and SGST output, which results in difference between books and credit ledger of GST.

Posted by VINAY BHARGAV KUMAR G on May 17, 2019

Filed Under GST

Answer ID : 76593

As per the Rule 43, ITC on capital goods which are used partly for effecting taxable outward supplies and partly for exempted supplies, the ITC shall be reversed as per the proportionate basis by adding to the output tax liability over a period of use full life of the asset ie. 60 months. you can edit all the cells in setoff table of GSTR 3B subject to some restriction. Try by editing the suggested amounts by system.

Posted by Rajesha L on May 20, 2019
Answer ID : 76621

ITC on capital goods can be taken in the month the asset is acquired and the relevant invoice is accounted in the books. Only on the transfer/ disposal of the asset on which ITC was claimed, for purposes of reversal of ITC,.5% per quarter is the eligible credit and the balance ITC will be reversed. Similerly capital assets used for non taxable supply is used for taxable supply or if reverse is the case, this 5% per quarter is applied for taking ITC or reversing ITC.

Posted by CA. VENKITARAMAN K V on May 24, 2019
Answer ID : 76691

to be taken in single month and its is to be reversed 1. proportionately in case of exempted and nil rated supply along with normal supply 2. on the time of disposal of capital goods

Posted by CA JEET REWRI on May 30, 2019