Hello,
In case of sale of capital goods, the life of capital goods is assumed to be 5 years for GST purpose and ITC reversal needs to be made for 5% for every quarter pending in the life of 5 years.
Now, as I understand, there are 3 methods to show this ITC reversal in the tax return:
a) Show this under ITC reversal
b) Reduce this from ITC
c) Add this to Sales and include the liability of GST thereof
Of course, the first method seems to be most apt. But are the other 2 methods also acceptable? Are there any notifications/circulars in this regard?
CAclubindia
