Input Credit reversal on Capital Assets

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This query is : Resolved

Ravi Konda (Querist)

07 August 2024 Our company is into providing transportation services and we are registered under GTA service (FCM),for providing such services to customer.

Fleet (Commercial Vehicle) are being purchased on regular basis to provide services to customer.

We provide both Taxable as well as Exempt Services to Customers, input credit on Capital, Operational and Overhead Purchases is being claimed on the basis of Revenue Ratio which is result of both Taxable and Exempt Services.

In case of Operational and Overhead Purchases we reverse input credit in the same month on the basis of Ratio.

However, In the case of Capital Purchases we follow the 60 months rules provided in the GST for input credit.

We have taken 100% input credit on the purchases of commercial vehicles ,since we are providing both taxable and exempt services the input credit availed on these purchases is being reversed in 60 months as per the rules laid in GST for availing input credit on capital purchases

Now our company is providing 100% Taxable Services which means we no longer providing any Exempt services.

Here my question is that till date we were reversing the Input credit availed on capex purchase on the basis of 60 month rules, going forward do we need to reverse balance input credit availed on capex purchase without waiting for 60 months ? Note still we are using these vehicles for commercial purpose.

For Example- we have purchased Vehicle in Sept-2018 (FY 2018-2019) 100% ITC availed and follow process of Reversed Credit as per revenue ration in next 60 Month . Now Current year FY 2023-2024 is 100% taxable services. can we need to reserved ITC on the same pls advice on the same .