Hello Expert,
If a company sold duty credit scrips which is exempt, is it liable to reverse itc for the same? If Exempted & not required to calculate Reverse charge kindly share Notifications & circular.
In my view and understanding, as per Section 17(2) of GST Act, Input credit has to be reversed proportionately, where the goods or services or both are used for effecting taxable supplies including zero-rated supplies and exempt supplies, based on the above revenue proportionate.
How ever, there are no any specific inward supply of goods or services or both for duty credit scrips, hence, only Common Input Credit shall be reversed proportionately.
There are some case laws, which are available in Internet, may refer for better out come. Else if volume is high, better to file application against your State AAR.
CAclubindia
