Can Mr. A avail credit on Input services or capital goods held in stock, in case of new registration/voluntary Registration

Yes
No
Yes on Input services only
Yes on capital goods only

The correct answer is: A. Yes

A person can avail credit on input services or capital goods held in stock, in case of new registration/voluntary registration. This is because, under the GST law, a person is entitled to input tax credit on all inputs used in the course or furtherance of business. This includes input services and capital goods.

However, there are certain conditions that need to be satisfied in order to avail input tax credit on input services or capital goods held in stock. These conditions are as follows:

  • The input services or capital goods must have been purchased or acquired before the date of registration.
  • The input services or capital goods must have been used in the course or furtherance of business after the date of registration.
  • The input services or capital goods must be in existence on the date of filing the return.

If these conditions are satisfied, then the person can avail input tax credit on input services or capital goods held in stock.

Option B is incorrect because a person is entitled to input tax credit on all inputs used in the course or furtherance of business. This includes input services and capital goods.

Option C is incorrect because a person can avail input tax credit on both input services and capital goods.

Option D is incorrect because a person can avail input tax credit on both input services and capital goods.