can we use input tax credit on capital goods , to the rental income services, Goods and Services Tax - GST

[lagudu sivakumar]

Dear Experts,

one of our client is a company and it have utilised "input tax credit on Capital goods" towards the service of "rental income of the premises" during the financial year 2020-21.

what is the remedy for the above problem.

please need your help regarding above query

Thanking you

Posts / Replies

[KASTURI SETHI]

What are capital goods ?

[lagudu sivakumar]

Sir,

our client is a manufacturing of apparels business, here capital goods are "plant and machinery" required for stitching machinery.

Thanking You sir

[Shilpi Jain]

The moment credit is eligible it can be utilised for paying gst on outward gst liability.

There is no restriction in using ITC of capital goods for paying outward gst

[KASTURI SETHI]

There is no condition of one-to-one correlation in GST. It is also not blocked under Section 17 (5) of CGST Act.

[lagudu sivakumar]

Thank you very much sir for your valuable suggestion