Question 24 - Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 24. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?

Ans. As per section 16(10) of the MGL, the input tax credit shall not be allowed on the said tax component.