Rules Rule 40 of CGST Rules i.e. Manner of Taking Input Tax Credit of Inputs, Input Services or Capital Goods Held in Stock when dealer gets (a) Registered (b) Voluntary Registered (c) Opts out of Composition Levy (d) Reversal of ITC if Capital Goods sold (e) Exempt Supplies Becomes Taxable
Financial Year: 2017
Rule 40 of CGST Rules
Manner of claiming credit in special circumstances
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To be read with Section 18(1)(a) Fresh Registration Section 18(1)(b) Voluntary Registration Section 18(1)(c) Opts out of Composition Levy Section 18(1)(d) Exempt Supplies Becomes Taxable Section 18(6) If capital Goods are supplied i.e. sold |
(1) The input tax credit claimed
in accordance with the provisions of sub-section (1) of section 18
on the inputs held in stock or
inputs contained in semi-finished or finished goods held in stock,
or the credit claimed on capital goods in accordance with the provisions of clauses (c) and (d) of the said sub-section,
shall be subject to the following conditions, namely,-
(a) the input tax credit on capital goods,
in terms of clauses (c) and (d) of sub-section (1) of section 18,
shall be claimed after reducing the tax paid on such capital goods
by five percentage points per quarter of a year or part thereof
from the date of the invoice
or such other documents
on which the capital goods were received by the taxable person.
(b) the registered person shall
within a period of thirty days
from the date of his becoming eligible to avail the input tax credit under sub-section (1) of section 18
shall make a declaration, electronically,
on the common portal in FORM GST ITC01
to the effect that he is eligible to avail the input tax credit as aforesaid;
(b) the registered person shall
within a period of thirty days
from the date of becoming eligible to avail the input tax credit under sub-section (1) of section 18,
or within such further period as may be extended by the Commissioner by a notification in this behalf,
shall make a declaration, electronically,
on the common portal in FORM GST ITC-01
to the effect that he is eligible to avail the input tax credit as aforesaid
Provided that any extension of the time limit
notified by the Commissioner of State tax
or the Commissioner of Union territory tax
shall be deemed to be notified by the Commissioner
(c) the declaration under clause (b)
shall clearly specify the details relating to the
inputs held in stock
or inputs contained in semi-finished or finished goods held in stock,
or as the case may be, capital goods
on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of the Act,
in the case of a claim under clause (a) of sub-section (1) of section 18;
(ii) on the day immediately preceding the date of the grant of registration,
in the case of a claim under clause (b) of sub-section (1) of section 18;
(iii) on the day immediately preceding the date from which he becomes liable to pay tax under section 9,
in the case of a claim under clause (c) of sub-section (1) of section 18;
(iv) on the day immediately preceding the date from which
the supplies made by the registered person becomes taxable,
in the case of a claim under clause (d) of sub-section (1) of section 18;
(d) the details furnished in the declaration under clause (b) shall be duly certified by a practicing chartered accountant or a cost accountant
if the aggregate value of the claim on account of
central tax, State tax, Union territory tax and integrated tax
exceeds two lakh rupees;
(e) the input tax credit claimed in accordance with the provisions of clauses (c) and (d) of sub-section (1) of section 18
shall be verified with the corresponding details
furnished by the corresponding supplier in FORM GSTR-1
or as the case may be,
in FORM GSTR- 4,
on the common portal.
(2) The amount of credit
in the case of supply of capital goods or
plant and machinery,
for the purposes of sub-section (6) of section 18,
shall be calculated by reducing the input tax on the said goods
at the rate of five percentage points for every quarter or part thereof
from the date of the issue of the invoice for such goods.
Thanks
CA Rahul Gupta