GSTGST credit on new machinery purchased

[Sahadev Maity]

Dear experts,

I am going to start a new factory, for the I need to buy some machineris from outer state of Rs around 30lacs. Previous CST was 2% but now GST is 18% on purchase of machinery.

So kindly advice me, can I avail the GST credit on purchase of that machinery if yes then how?

I would be very grateful to u all.

Thanks & regards,

sahadev Maity

mob-9654621194

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[KASTURI SETHI]

Wait for new GST Credit Rules.

[MUKUND THAKKAR]

Yes,

Under GST Regime you are eligible to take GST credit of purchase the Machinery. but condition is you should be Capitalized machinery in your books of account as a capital goods and take 100% ITC.

[KASTURI SETHI]

I support the views of Sh.Mukund Thanks, Sir.

[Sahadev Maity]

Thank you all 🙏🏻

[Ramesh Kothari]

Yes I can avail GST on CG and same utilize at the time of dispatch of material in same year

 

AI Summary

Input tax credit on capital goods available where machinery is capitalized, permitting full ITC recovery and utilisation.
Input tax credit on new machinery under GST is available where the machinery is capitalised as capital goods in the purchaser's books, permitting full ITC subject to statutory conditions and rules; proper documentation of interstate supply and tax payment is required and the credit may be utilised against output tax liabilities, including in the year of dispatch of material.