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Reversal of GST if capital goods partly destroyed

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SUKHVEER SINGH

49 Points Posted on 16 January 2023

If capital goods destroyed by fire partly say 50%.It can be used by incurring major capital expenditure.
Is i need to reversal of GST .?

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Quick Summary

This discussion addresses the GST implications when capital goods are partially destroyed, for example, by fire. It confirms that GST reversal is indeed required in such scenarios. The key question explored is whether this reversal should be proportional to the damage or a full reversal, especially if the remaining portion can still be used after significant capital expenditure.