GST on capital goods
GST on 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. Input Tax Credit on Capital Goods To avail input tax credit for the Capital Goods the following conditions, in addition to conditions as stated under section 16(2) of the CGST Act, are to be fulfilled. 1. The Capital Goods has been capitalised in books of account of the person and 2. The Capital Goods are used or intended to be used in the course or furtherance of business. The conditions as stated under section 16(2) of the CGST Act are as under: 1. The registered person is in possession of Tax Invoice. 2. The registered person has received Capital Goods. 3. The tax charged on such capital goods has been paid and 4 The GST Return has been filed in regard of such of Capital Goods by the Supplier. The further cond