Question ID :
38167
Input Tax Credit
Whether input tax credit on capital goods will be allowed for a company who is in restaurant business and registered under normal scheme.
Posted by
Shobhit Bansal
on
May 29, 2019
Filed Under
GST
ITC on Capital goods used for the purpose of business is eligible and proportionate deduction allowable if partly used. The restriction regarding claim for depreciation may also be kept in mind.
Posted by
SIVADAS CHETTOOR on
May 29, 2019
Answer ID :
76673
yes. only where the restaurant opts to pay tax @5%, IPT is not allowed.
Posted by
CA. VENKITARAMAN K V on
May 29, 2019
Answer ID :
76697
Yes. If opted for 18% ITC on capital goods can be claimed.
Posted by
CA. chunauti dholakia on
May 31, 2019
Answer ID :
76712
Of course , the company get the credit on capital goods but in the proportion of useful life of the capital assets
Posted by
CA. BISHT RAKESH on
Jun 01, 2019
Answer ID :
76791
Input credit is allowed. However if the restaurant is paying tax @5% then it cannot avail the input credit. In that situation better to capitalise the GST so that at least claim depreciation on GST.
Posted by
CA. JHA SHANKAR KUMAR on
Jun 07, 2019
Answer ID :
76792
Input credit is allowed. However if the restaurant is paying tax @5% then it cannot avail the input credit. In that situation better to capitalise the GST so that at least claim depreciation on GST.
Posted by
CA. JHA SHANKAR KUMAR on
Jun 07, 2019