Question ID : 38174

ITC ON MOTOR CAB

My Doubt is in case of motorcab or maxicab where rate of GST is either 12% with ITC or 5% without ITC under forward charge as per notification 20/2017 central tax (rate). Here my doubt is - 1. If I followed 5% rate for 2018-19 and want to follow 12% rate then what about ITC on capital goods which was acquired in 2018-19. Is It available fully ? Or it will be reduced by months or percentages ? as this reduction is given for cases where we shift from composition to regular or from exempt supply to taxable. I have not found specific provisions for above mentioned case. 2. Can we opt for the option only on yearly basis.

Answer ID : 76694

Switching from composition scheme under current regime to normal tax payer under GST will attract transition provision appointed date. You can only switch once in a year and which is before the start of the Financial year. The credit on capital goods is available on the basis of the useful life of the capital assets

Answer ID : 76714

it will be reduced by the months for which it was used in 2018-19, @5% per quarter.

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