Input tax credit denied where depreciation is claimed on the tax component, preventing double benefit for capital goods. If a registered person has claimed depreciation under the Income Tax Act on the tax component included in the cost of capital goods or plant and machinery, the corresponding input tax credit attributable to that tax component is not allowable under the CGST framework, thereby preventing double benefit when depreciation has been claimed on the tax element.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit denied where depreciation is claimed on the tax component, preventing double benefit for capital goods.
If a registered person has claimed depreciation under the Income Tax Act on the tax component included in the cost of capital goods or plant and machinery, the corresponding input tax credit attributable to that tax component is not allowable under the CGST framework, thereby preventing double benefit when depreciation has been claimed on the tax element.
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