ITC rules

A taxable person purchased an oil tanker paying GST Rs 7 Lakhs. In the year of purchase he takes ITC Rs 7 Lakh on the ground that he will use it for both taxable and non taxable supply. In the first and second year he used the tanker on RCM basis .He did not utilized ITC.
In the third year he sold the tanker with GST liability of Rs.4 Lakh and utilized the ITC and rest is reversed without any interest because there was no net cash liability.

Now my Query is that whether there is any violation of GST rules in above transactions
and
RCM facility availed by him was legal as he has taken ITC
Please advise.
Replies (1)
Can I file gstr 3b return as per 2A data

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Follow