GST on depreciation

Dear student 
when any capital goods are purchased by a person he has to pay GST on the purchase. Later on you can take INPUT TAX CREDIT on the amount of GST paid at the time of purchase of capital goods. Example - when a person purchase a machinery for his factory he has to pay GST at the applicable rate, this GST paid can be claim as credit in the same was as inputs.
However there is one condition for taking input tax credit on capital goods i.e.., if you claim depreciation on the GST paid while purchasing the capital goods, you will not be eligible to claim input tax credit.
In simple term only one thing will be applicable either you can claim depreciation on the capital assets purchased or you can claim input tax credit on the amount of GST paid at the time of purchase of capital goods. Both will not be provided.
Regards

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