The conditions prescribed under Rule 40 of the CGST Rules, 2017 are as under:
(a)The credit on capital goods can be claimed after reduction of 5 percentage points per quarter from the tax paid on such capital goods from the date of 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 30 days from the date of his becoming eligible to avail the input tax credit under section 18(1) 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. The declaration 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–
(i) 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 section 18(1)(a);
(ii) on the day immediately preceding the date of the grant of registration, in the case of a claim under section 18(1)(b);
(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 section 18(1)(c);
(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
section 18(1)(d);
(c) The details furnished should be certified by a practicing Chartered/ Cost Accountant if the aggregate value of claim of credit on account of Central Tax, State Tax, Union territory Tax and Integrated Tax exceeds Rs. 2 Lakh.
(d) The credit details furnished will be matched and verified with the corresponding details furnished by the supplier in FORM GSTR-1 or Form GSTR-4 on the common portal.
(ICAI FAQ PUBLICATION 06-09-2017 -: Input Tax Credit: FAQ NO. 52)