Can anyone please clarify me that while calculating the ITC of capital goods attributable to exempt supplies through the formula (te=tr x e/t)
whether tr will include tm of capital goods at the beggining of the tax period whose useful life remains during the tax period
or
it will include tm of capital goods at the beggining+tm of capital goods acquired during the tax period also
Languge of Rule 43:- (f) the amount of input tax credit, at the beginning of a tax period, on all common capital goods whose useful life remains during the tax period, be denoted as Tr and shall be the aggregate of Tm for all such capital goods; please clarify
Clarification on ITC Calculation for Capital Goods Under GST Rule 43(1)(f): Understanding Tax Periods and Opening Balances. A discussion on a forum addresses a query about calculating Input Tax Credit (ITC) for capital goods under Goods and Services Tax (GST) Rule 43(1)(f). The original question seeks clarification on whether the calculation should include only the capital goods at the beginning of the tax period or also those acquired during the period. A respondent clarifies that the 'tax period' refers to the period for which returns are filed, either monthly or quarterly, and that the beginning of the tax period means the opening balance of ITC, equivalent to the closing balance from the previous period. (AI Summary)