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Rule 43 ITC reversal of CG working in excel format

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)

04 January 2020

I would like to see excel working formats for

calculating and tracking the reversal of

Proportionate ITC as per Rule 43 on Capital goods.

Regards,

Roopali

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12 Replies

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 04 January 2020

Can't understand Your query?

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 05 January 2020

I need rule 43 working in excel

ROHIT KUMAR (prop.) (260 Points)
Replied 05 January 2020

Yes it available on some ca's official site but it is paid .........

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 05 January 2020

@ Mr Roopali Kadam.,

Better to search the help file in CCI file section. You can get it free.

Just give Your time for searching...

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 06 January 2020

Dear Roopali Madam

Let's understand the Rule 43 with Exmaple:

There can be 2 Situations :
1. Capital Goods being Used in Supply of Exempted Supply Only.
2. . Capital Goods being Used in Supply of Exempted & Taxable Supply.

Now lets take 1St Condition:

For Month May2019
Machinery purchase =100000/- lac
GST 18% = 18000/-
Exempted sale = 200000/-

Note : Rule 43(1)(c) provide Useful life of capital goods shall be deemed as 5Years

Formula applied for Reversal of Input Tax Credit :

Tc : Total ITC on capital Goods ie Rs 18000/-

Tm: Monthly ITC on Capital Goods ie 300/- (18000÷60)

Te: ITC to be reversed

Te = Tm X Exempted Supply÷Total Turnover

Te= 300X200000÷200000= 300/-

** Reverse Rs. 300/- monthly in GSTR 3B & pay interest.

CONDITION 2.
For Month May2019
Machinery purchase =100000/- lac
GST 18% = 18000/-
Exempted sale = 200000/-
Taxable Sale. = 100000/-

Te = 300X200000÷300000= 200/-

Reverse 200/- in GSTR 3b for month May. & pay Interest.

Hope above examples clear the working of Rule 43

1 Like

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 08 January 2020

yes, I saw one paid option too. thanks for pointing out that

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 08 January 2020

I did. couldn't find "Excel working". So posted here. Share when you find one. :)

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 08 January 2020

I know the rule.

Would like an excel working or I will have to make one :)

I really appreciate your time and explanation

Thank you,

Roopali

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 12 January 2020

When you know the rule then do prepare your own Excel sheet , what is the problem......

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 13 January 2020

I asked for excel working for that rule and not what that rule is.

Isn't this forum to ask for the help?

Though I got a different answer than what I am expecting,

I sincerely appreciate your time and efforts to reply to my post.

I am still looking for such excel working and thanks to all who would like to share it with us.

Regards,

Roopali

Suresh Prajapat (7 Points)
Replied 23 July 2020

Sir rules section 43 reversal ITC CAPITAL ASSETS Working sheet provide me

Suresh Prajapat (7 Points)
Replied 23 July 2020

Originally posted by : Roopali Kadam
	I would like to see excel working formats for calculating and tracking the reversal of Proportionate ITC as per Rule 43 on Capital goods. Regards, Roopali