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Whether Input tax credit on Inputs and Capital Goods is allowed in one installment?

  1. Yes. Input tax credit will be available in full with respect to inputs and capital goods, subject to fulfillment of the prescribed conditions under Section 16(2) of the CGST Act.
  2. Even in the case of supply of goods in lots/ installments, the credit would be available in full on the receipt of the last lot/ installment.

The existing concept of partial credit on purchase of capital goods under the CENVAT Credit Rules, 2004 (i.e. 50% in the year of receipt and 50% in subsequent years) has been done away with.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.4)