Dear Experts,
one of our client is a company and it have utilised 'input tax credit on Capital goods' towards the service of 'rental income of the premises' during the financial year 2020-21.
what is the remedy for the above problem.
please need your help regarding above query
Thanking you
Apparel Manufacturer Can Use ITC from Capital Goods for Rental Income Services; No One-to-One Correlation Needed A company involved in apparel manufacturing sought advice on using input tax credit (ITC) from capital goods, specifically plant and machinery, for rental income services during the 2020-21 financial year. Experts in the forum clarified that ITC on capital goods can be utilized for paying GST on outward liabilities, with no restrictions or requirements for one-to-one correlation under the GST framework. It is not blocked under Section 17(5) of the CGST Act, allowing the company to apply the credit as needed. (AI Summary)
TaxTMI 
TaxTMI 
