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Gst sale of capital goods on which itc is availed

ITC / Input 265 views 1 replies

John Paul

Student CA Final

32 Points Joined September 2012

When capital goods on which itc has been availed is sold, provisions of section 18(6) has to be complied.Section 18(6) has been mentioned in Rule 40(2) and rule 44(6) of cgst rules 2017.What is the correct method to be followed in above case

ie whether rule 40(2) or rule 40(6) is to be followed.Please explain

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

It shall computed as per Rule 44 (6) & sub rule 1(b)
Rule 40 Covers the provision of Sub section of 18 (1)(c),(d) of section 18 , yes Rule 40 (2) says about sub section (6) of 18 but In Rule 44 (6) & Rule 44(1)(b) specifically with illustration lays out the rule for same.

Hence follow Rule 44(6) CGST Act