Pankaj Rawat
(GST Practitioner)
(55032 Points)
Replied 09 June 2018
CALCULATION of Input Tax Credit Reversal when Capital Goods Used In supply of both exempted supply & taxable supply
1. Calculate Tc : total input tax credit on capital goods Eg. Machinery for Rs. 1lac & GST on it is 18% say 18000/- so Tc is 18000/-
2. Calculate Tm : monthly input credit on capital goods. Eg In GST capital goods life is deem as 5 yrs or 60 months, so Tm= 18000/60 ( which is 300)
3 Calculate Tr : means if having more then one capital goods say 2 then to calculate Tm for both the capital goods So Tr= Tm1 +Tm2
3. Calculate Te : how much input being to be reverse in exempted supply or how much input for capital goods attributed to exempted supply
In Case When 2 Capital goods:
Te = Tr1+Tr2 x exempted sale÷Total Turnover or Total sale
* Total sale means exempted + taxable
In Case 1 Capital Goods
Te = Tm x Exempted sale ÷ Total Sale
Now Reverse Te in Table 11(d) of GSTR 2, & in GSTR 3B ,. Under table 4
* Note : even if u hv sold that capital Goods say in 2 year , even then also u hv to reverse the input for remaining 3 years
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