When a ITC availed Capital good is partly used for exempted goods or exempted services. Whether ITC should be reversed
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Quick Summary
This discussion clarifies the rules around Input Tax Credit (ITC) for capital goods when they are partly used for exempted goods or services. According to Section 17(2) read with rule 43, ITC must be reversed for the portion attributable to exempted supplies. The process involves showing this reversal in Table 4(B)(1) of your monthly GST 3B return.