GST CREDIT ON MOBILE AND COMPUTER USE FOR FACTORY OFFICE

[BHAKTIKANT BHATT]

SIR,

WE HAVING A EXCISE ABLE GOODS MANUFACTURING UNIT. NOW WE PURCHASE ONE COMPUTER AND ONE MOBILE FOR FACTORY OFFICE USE.

KINDLY LET ME KNOW WHETHER WE TAKE GST CREDIT ON COMPUTER AND MOBILE WHICH USE FOR FACTORY OFFICE..

PL GIVE US YOUR VALUABLE SUGGESTION.

THANKING YOU

[Alkesh Jani]

Sir, In this regards, Computer can be considered as capital goods and mobile if purchased in the name of firm, same shall be recorded in the books of Account. ITC can be availed as same is not mentioned in Section 17(5) of the CGST Act,2017,but the provisions of Section 16(3) shall apply, so while taking the ITC of the computer and mobile the depreciation cannot be claimed under the provisions of Income tax or else the input tax credit on the said tax component shall not be allowed. The Rule 44 of the CGST Rules, 2017 may also be considered for reversal If any.

[Ganeshan Kalyani]

Input tax credit is eligible on both computer and mobile .

[KASTURI SETHI]

ITC allowed. I support the views of both experts.

AI Summary

Input tax credit on office computers and mobiles permitted, subject to depreciation adjustment and GST reversal rules. Input tax credit is available for a computer (treated as capital goods) and for a mobile purchased in the firm's name and recorded in the books for factory office use. The credit is not excluded by blocked-credit categories, but where ITC is claimed the tax component cannot also be claimed as depreciation under income-tax rules. Applicable GST reversal and adjustment provisions for capital goods and inputs must be observed and accounted for in accordance with the GST rules.