TaxTMI 
TaxTMI 
Can a commercial photographer avail ITC of Camera, Lighting System, Computer, Electronic display boards even though they are capitalized? Is there any way out to claim ITC on the same? These are the only inputs used by him in the course of furtherance of business.
Claim of ITC by a Commercial Photographer
13 Feb 2024 
8 Replies 
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Input tax credit eligibility for capital goods denied when capitalised before registration; credit available if procured after registration.
ITC on goods capitalised in the books is not available for capital goods procured before GST registration; Sections 18(1)(a) and (b) allow credit only for inputs held in stock on registration and exclude capitalised capital goods. ITC on capital goods is claimable only if procured after obtaining GST registration. Attempting to avoid capitalisation to claim ITC involves accounting and income tax risks and may require auditor concurrence. (AI Summary)
ITC on goods capitalised in the books is not available for capital goods procured before GST registration; Sections 18(1)(a) and (b) allow credit only for inputs held in stock on registration and exclude capitalised capital goods. ITC on capital goods is claimable only if procured after obtaining GST registration. Attempting to avoid capitalisation to claim ITC involves accounting and income tax risks and may require auditor concurrence. (AI Summary)