Input tax credit limited where goods are capitalised: taxpayer may not claim ITC and depreciation on same capital goods simultaneously.

Goods and services are distinct categories used to determine credit eligibility, with Schedule II resolving classification questions. Goods that are capitalised in the claimant's books and used in business are treated as capital goods, while other business goods are inputs; services used in business are input services. Eligibility for input tax credit depends on these classifications, and a taxpayer who claims depreciation under income tax law on a capitalised asset cannot simultaneously claim input tax credit on that asset.

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