20 December 2019
1. in case of reversed of itc on sale of fixed assets i purchased it in igst but sale in local as CGST & SGST Now what to reversed CGST & SGST or IGST. 2. I purchased as on 10/4/18 & sale as on 11/11/2019 so i calculate reversal as input on purchase*13/20 is its correct. 3. I need to reversed as per point no. 2 and paid tax on sale both or only one which is higher and how to show this in GSTR 3B.
20 December 2019
1. Tax on transaction amount OR ITC availed reduced by 5% per quarter whichever is higher need to pay /reverse as the case may be. If TOTAL GST as per sale ie CGST & SGST , ITC availed reduced by 5% per quarter is higher then IGST.
### 3️⃣ Whether to pay tax on sale and reverse ITC both or only one (higher)?
* You **must do both**:
* **Pay GST on the sale** of fixed asset as per CGST + SGST rates.
* **Reverse ITC** proportionate to the unutilized period of 24 months.
* The **amount payable is the higher of**:
* Tax on transaction amount (sale value) * Reversed ITC amount (adjusted as above)
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### 4️⃣ How to show this in GSTR-3B and GSTR-1?
* **Sale of fixed asset** should be shown as a regular outward supply under **GSTR-1**.
* **In GSTR-3B**, report the sale value under the respective outward supplies and pay applicable GST.
* **Reversal of ITC** should be reported under **Table 4(B) – ITC Reversed** in GSTR-3B.
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### **Summary Table**
| Point | Action Required | | ----------------------------- | -------------------------------------------------------------------- | | ITC taken on IGST, sale local | Reverse ITC as CGST & SGST in proportion | | ITC reversal calculation | ITC × (24 – months held)/24 | | Pay tax on sale & reverse ITC | Both must be done; pay higher of tax or ITC reversed | | Reporting in GSTR-1 & GSTR-3B | Sale in GSTR-1; tax paid in GSTR-3B; ITC reversed under ITC reversal |
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If you want, I can help prepare a sample journal entry or GST return summary for your case!