There are different provisions under the GST regime to calculate input tax credit (ITC) on capital goods under GST, availability and non-availability of input tax credit and ITC reversal calculation as well.
In addition to this, capital goods use special provisions as well for both taxable and exempted supplies.
What are Capital Goods Under GST Act?
Under section 2 (19) of the GST Act, “Capital goods” is mentioned as the goods, worth of which is capitalized in the books of account of the person requesting for the input tax credit and the goods which are used and meant to be used in the course or furtherance of business.
