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Captive consumption of Tmt bars

13 July 2021

sir

we are tmt bar manufacturing unit, we used our own tmt bars for construction of building.

my doubt is, we want to reverse the ITC under RCM.
pls clarify.

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9 Replies

prasad Nilugal (3914 Points)
Replied 13 July 2021

Input tax credit not available for material used for construction of factory building for his own account , It's block credit under section 17 (5) of the CGST act 2017 .if you have taken then you have to reverse it with interest .

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 13 July 2021

ITC is not applicable

Imthias ahamed Kormath (910 Points)
Replied 13 July 2021

If it taken by u from old stock,Itc b reversed with interest.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 13 July 2021

ITC to be reversed

Ramesh Rao (217 Points)
Replied 13 July 2021

Sir, I didn't take ITC, I am asking if we used own tmt bars for construction purpose of own building, what would be GST on used tmt bars

CMA Poornima Madhava (CMA) (13097 Points)
Replied 13 July 2021

GST rate same as applicable for normal supplies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 14 July 2021

No..... there is no RCM .

If the unit are in same state , the said Raw material can be transferred under delivery challan (it's part of process of manufacturing). , But if the units are in 2 different state then raw material need to transfer only by issuing Tax Invoice & is taxable.