Manner of claiming credit in special circumstances under GST

Rule-40 of CGST Rules 2017

40. Man­ner of claim­ing cred­it in spe­cial circumstances.- 

(1) The input tax cred­it claimed in accor­dance with the pro­vi­sions of sub-sec­tion (1) of sec­tion 18 on the inputs held in stock or inputs con­tained in semi-fin­ished or fin­ished goods held in stock, or the cred­it claimed on cap­i­tal goods in accor­dance with the pro­vi­sions of claus­es © and (d) of the said sub-sec­tion, shall be sub­ject to the fol­low­ing con­di­tions, namely,-

• the input tax cred­it on cap­i­tal goods, in terms of claus­es © and (d) of sub-section
• of sec­tion 18, shall be claimed after reduc­ing the tax paid on such cap­i­tal goods by five per­cent­age points per quar­ter of a year or part there­of from the date of the invoice or such oth­er doc­u­ments on which the cap­i­tal goods were received by the tax­able person.
• the reg­is­tered per­son shall with­in a peri­od of thir­ty days from the date of his becom­ing eli­gi­ble to avail the input tax cred­it under sub-sec­tion (1) of sec­tion 18 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 under clause (b) 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– 
  • 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 clause (a) of sub-sec­tion (1) of sec­tion 18;
  • on the day imme­di­ate­ly pre­ced­ing the date of the grant of reg­is­tra­tion, in the case of a claim under clause (b) of sub-sec­tion (1) of sec­tion 18;
  • 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 clause © of sub- sec­tion (1) of sec­tion 18;
  • 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 clause (d) of sub-sec­tion (1) of sec­tion 18;

• the details fur­nished in the dec­la­ra­tion under clause (b) shall be duly cer­ti­fied by a prac­tic­ing char­tered accoun­tant or a cost accoun­tant if the aggre­gate val­ue of the claim on account of cen­tral tax, State tax, Union ter­ri­to­ry tax and inte­grat­ed tax exceeds two lakh rupees;
• the input tax cred­it claimed in accor­dance with the pro­vi­sions of claus­es © and (d) of sub-sec­tion (1) of sec­tion 18 shall be ver­i­fied with the cor­re­spond­ing details fur­nished by the cor­re­spond­ing sup­pli­er in FORM GSTR‑1 or as the case may be, in FORM GSTR- 4, on the common
• The amount of cred­it in the case of sup­ply of cap­i­tal goods or plant and machin­ery, for the pur­pos­es of sub-sec­tion (6) of sec­tion 18, shall be cal­cu­lat­ed by reduc­ing the input tax on the

said goods at the rate of five per­cent­age points for every quar­ter or part there­of from the date of the issue of the invoice for such goods.