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My client is registered under gst he is owner of hotel he want to purchase air conditioner fridge and inverter which is capital assets. Which is used for hotel can he take itc benefit??

My client is registered under gst he is owner of hotel he want to purchase air conditioner fridge and inverter which is capital assets. Which is used for hotel can he take itc benefit??

Reply

As per sub Rule 43 of CGST Rule, 2018, the amount of input tax in respect of capital goods not covered under clauses (a) and (b), shall be credited to the electronic credit ledger and the useful life of such goods shall be taken as five years from the date of the invoice for such goods.

Since, your client is engaged exclusively in taxable supplies, the GST paid while purchasing capital goods will be completely available as ITC.

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