Reversal of ITC rule 42
This query is : Resolved
nitin gulati
(Querist)
29 November 2019
Sir
In case of Export sales of goods and domestic sales of goods made by dealer.
Whether Rule 42 is applicable for reversal of ITC .
say Export Sales :1 cr
Domestic Sales: 2 Cr
Total ITC = 30 lac (Purchase of Goods)
Reversal of ITC (rule 42)=30*1/3= 10 Lac.
Please provide your opinion.(regarding above)
Thanks in advance.
In case of Export sales of goods and domestic sales of goods made by dealer.
Whether Rule 42 is applicable for reversal of ITC .
say Export Sales :1 cr
Domestic Sales: 2 Cr
Total ITC = 30 lac (Purchase of Goods)
Reversal of ITC (rule 42)=30*1/3= 10 Lac.
Please provide your opinion.(regarding above)
Thanks in advance.
CA Ankit R Momaya
(Expert)
29 November 2019
Rule 42 is not applicable in cases of Exports since it is a Zero-rated Supply.
No requirement to reverse ITC.
No requirement to reverse ITC.
CA Anita Bhadra
(Expert)
29 November 2019
Reversal need not to be made in case of export sale
As per Rule 42 of CGST Act - ITC to be used exclusively for making supply other than exempted (but incl. Zero rated)
As per Rule 42 of CGST Act - ITC to be used exclusively for making supply other than exempted (but incl. Zero rated)
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