I have purchase machine (Capital )
Dated 27.02.2018 Amount 24,00,000/-
GST 4,32,000/- and full ITC 4,32,000/- claim .
Then I sold this Machine Dated 17.11.2018 Amount 12,00,000/- GST charged 2,16,000/-
In this Case ITC reversable or not
If Reversable how to calculate Reversable ITC and Interest rate
also
suggest payment throw GSTR 3B or DRC 03
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ITC on Capital goods
Replies (2)
Refer rule 44 of CGST Rules. Rule 44 states that ITC taken on capital goods shall have to be reversed in case of sale on pro rata basis.
As per section 18(6) , read with rule 40(2), in case of supply of capital goods on which ITC has been claimed , the registered person is liable to pay amount highest of following:
1. ITC reduce 5% for every Qtr or
2. Tax on Transaction Value
Now in you case you have almost use the capital goods for 9months so the Number of qtrs come to 3 Nos.
Total ITC at the time purchase : 432000/-
% of reduction (3*5). : 15%
Amount of Reduction : 64800/-
(15% of 432000/-)
Net Amount (4.32 lac. - .63) : 367200/-
Tax on Transaction Value : 216000/-
So you are required to Pay Higher of above : which is Rs. 367000/-
1. ITC reduce 5% for every Qtr or
2. Tax on Transaction Value
Now in you case you have almost use the capital goods for 9months so the Number of qtrs come to 3 Nos.
Total ITC at the time purchase : 432000/-
% of reduction (3*5). : 15%
Amount of Reduction : 64800/-
(15% of 432000/-)
Net Amount (4.32 lac. - .63) : 367200/-
Tax on Transaction Value : 216000/-
So you are required to Pay Higher of above : which is Rs. 367000/-
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