Input tax credit on capital goods

Capital goods are assets like machinery, computers and equipment used in business. GST paid on them is generally eligible for input tax credit.

Points to watch

• You usually claim the full credit in the period of purchase, subject to the normal conditions
• If you also make exempt supplies, the credit may need proportionate treatment
• You cannot claim ITC and also claim depreciation on the GST component under income tax; pick one

Keep the purchase invoice and ensure it shows in your GSTR-2B.