GJM & Co.

Cases where GST Credit Not Available Today we shall discuss situations/transactions where Input Tax Credit under GST cannot be availed.   This is a very important aspect one needs to know as incorrect recording or GST transactions can have serious repercussions.   So we have tried to simply what transactions are a NO for claiming input tax credit (ITC) under GST rules: 1.      Motor vehicles & conveyances ITC is not available for motor vehicles and conveyances. Exceptions to ITC on motor vehicles when they are used for : a.)    Supply of other vehicles or conveyances.   If you are in the business of supplying cars then ITC will be available.   So automobile dealers can claim ITC. b.)    Transportation of Passengers.   So if you are providing transportation of passengers then ITC will be allowed on the Vehicle purchased and used for such transport.   Hence, all businesses running Passenger ...

GST Input Credit on Capital Goods Today we shall explain through this article about the implications of considering availability of Input Credit on GST paid towards purchase of Capital Goods. Currently businesses may be using many capital goods on which input tax credit is available. This article is for the portion of credit of GST paid on purchasing capital goods. First let us understand what Capital Goods are:   Capital goods are assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services. For example, a stone screening machine used in mining industry is a capital asset for the Miner. So then what is the difference between capital goods & other inputs? You are using a screener to filter mined minerals like ore. You fill diesel to run the machine or incur expenses on the screener’s maintenance. These are your inputs.   The ore filtered is your final product.   The Screener is the cap...