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TMI Blog2018 (10) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... edit unless such credit was admissible as input tax credit under the existing law and is also admissible as input tax credit under GST Act - As per Section 2(59) of GST Act, 'input' means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business. The computers, laptops etc. were used by the applicant for providing output service are capital assets. These capital goods are ineligible to claim input tax credit under VAT Laws - The applicant being a service provider, is not eligible to avail input tax credit on computers and laptops held during transition period. The proviso to Sub-Section (2) of Section 140 of the GST Act, is specific to the point that input tax credit not admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant avail ITC for the VAT paid? The authorized representative was heard. He has stated that by virtue of the statutory provisions, the applicant is entitled to get the input tax on the capital goods held during the transition period. As per Section 140(3) of the GST Act, a registered person who was not liable to be registered under the existing law or who was engaged in the sale of exempted goods or tax free goods, by whatever the name called, or goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law, but which are liable to tax under this Act or where the person was entitled to the credit of input tax at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der VAT Laws. Section 2 (x) of Kerala Value Added Tax Act, define capital goods as follows: Capital goods means plant, machinery, equipments including pollution/quality control, lab and cold storage equipments used in manufacture, processing, excluding for job works or rendering of services, packing or storage of goods in the course of business and delivery vehicles but Shall not include such goods and civil structure as may be notified by Government. The applicant being a service provider, is not eligible to avail input tax credit on computers and laptops held during transition period. The proviso to Sub-Section (2) of Section 140 of the GST Act, is specific to the point that input tax credit not admissible as under the existi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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