Kanha is doing business since 2016. Now he applying for registration on a voluntary basis under GST law. Whether he is eligible to take the ITC on the input and capital goods held in stock?
A person who takes voluntary registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. Further, the registered person shall not be entitled to take the input tax credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply.
It infers that
- a) he is not entitled to take the credit in respect of the capital goods.
- b) he is not entitled to take the credit in respect of the any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply