OTHER PROVISIONS RELATING TO CAPITAL GOODS

1. ITC would be available in full without restrictions where Capital Goods have been used for effecting taxable supplies and business activity.
2. The scheme of 50% credit in first year in terms of Cenvat Credit Rules has been dispensed with.
3. No credit will be admissible on capital goods used exclusively for effecting exempt supplies or supplies exclusively for non-business or personal activity
4. Credit to the extent of depreciation under Income Tax Act is not admissible.
5. Where Capital Goods is used commonly for exempt and taxable supplies and/or business non-business activity the credit of input tax shall first be taken and then attributed as per  formulae prescribed under Rule 43 of Central Goods and Services Rules, 2017 taking useful life as 5 years.
6. Capital goods after taking credit can be sent to job-worker without reversing credit. These are to be returned within three years