ITC Reversal As per rules 42 & 43 of CGST Rules

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Aparna (Querist)
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15 May 2020 hello please guide me how i can calculated 42/43 reversal

i have find ITC reversal amount through following formula _ Exempted turnover /Total Turnover

kindly guide exempted turnover definition ??? as per my knowledge exempted turnover means Zero rated sales (export Sales )+ Nil rated sales +Non GST sales

Kindly guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 May 2020 Yes you are right that's the definition.

Aparna

Aparna (Querist)
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16 May 2020 Sir
One of my friend said that Zero rated supply not consider in exempt supply and not consider at the time of reversal 42/43.
so kindly provide section detail which mention zero rated supply consider in 42/43 exempted turnover definition

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 May 2020 Your friend is right exempt turnover should not include zero rated supply for this purpose.

MOHAMMED HUSSAIN

MOHAMMED HUSSAIN (Expert)
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16 May 2020 Yes. Zero rates supplies not to be considered while reversal of credit. Pl consider Nil rated, exempted supplies only for reversal of the credit. Hope the clarification will suffice your requirement.

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MOHAMMED HUSSAIN

MOHAMMED HUSSAIN (Expert)
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16 May 2020 Finally, exempted turnover means: Nil rated sales + Non GST sales and proportionately ITC can be reversible considering Export Sales + Zero Rated sales.

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