Capital Goods means 4 Categories of good as mentioned in Rule 2(a) of CCR

Here,they are classified as (A),(B),(C),(D)

Lets study these one by one

 

Rule 2(a): C apital Goods:  

(A)

1,Goods falling under Chapters 82, 84, 85, 90, heading number 6804 and 6805, of the First Schedule to Central Excise Tariff Act,

View Example

2. Pollution Control Equipments  -ex-

(like chimneys)


3.Components, spares and accessories of goods specified at (i) and (ii) above;

View Example

4.Moulds and dies, jigs and fixtures;

View Example

5.Refractories and refractory materials;

View Example

6. Tubes, pipes and fittings thereof, used in the factory;

View Example

7.Storage tank

View Example

8.Motor vehicles other than those falling under tariff heading 8702, 8703, 8704, 8711 and their chassis, (but including dumpers and trippers)

-ex-

Following Covered

Dumpers/Tippers/Tractors/Road Roller/Loaders etc

Following not covered

8702: Passenger vehicles carrying more than 10 persons Like bus

8703: Passenger vehicles carrying upto 10 persons Like  car

8704: Goods vehicles Like trucks

8711: Motor cycles

-eex- 

Used— 

  1. in the factory of the manufacturer of the final products,

         but does not include any equipment or appliance used in an office;

         or

        outside factory for generating electricity for captive use

 

  1. For providing output service;

 

Capital Goods Used

Type of Assessee

Used in

In Case of Manufacturer

Used in Factory Only

(if used in Office ,no input)

 

 

Or

Used outside factory

In case of electricity for captive use

 

In Case of Service Provider

Used for providing output service

 

 

 

(B)  Goods Transport Vehicles are Capital Goods

Goods Transport Vehicle is a capital goods in case of following services 

  • Courier Service
  • Providing service of renting goods vehicle
  • transportation of inputs and capital goods used for providing an output service;

In all these cases, Input available only if vehicle including chassis registered in name of the service provider

 

(C) Passenger Transport Vehicles are Capital Goods in case of following service providers

  • transportation of passengers;(Taxi Service) or
  • renting of such motor vehicle;(Cars on Rent) or
  • imparting motor driving skills;(Car Driving schools)

In all these cases, Input available only if vehicle including chassis registered in name of service provider

 

(D) Components/Spares/Accessories of B & C above

  1. Indirect Tax
  2. Cenvat Credit

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.