How much cenvat credit (IGST paid) can be availed if capital good i.e. Plant and machinery is purchased in the month of July and useful life is 10 years

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General CA RUPENDER SINGH 7 years 1 Answer 552 views Bronze 1

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  1. Meaning of Capital Goods

    According to section 2(19) of the CGST Act 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.
    The Input Tax Credit is not allowed on Capital Goods on following circumstances:

    1. If the Capital Goods are not capitalised in the books of account.

    2. If the Capital Goods are purchased for non business purpose.

    3. If the Capital Goods are purchased to be used exclusively for exempt supply.

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