deepak v 24 August 2019
As per Section 18(6), In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery determined under section 15, whichever is higher. So my query is, a capital good, purchased in VAT Regime where I had availed its credit, had been sold in the current year. Whether GST need to be paid?
Input tax credit as per section 2(63) means credit of input tax.
Input tax as per section 2(62) means CGST/SGST/IGST/UTGST charged on supplies made to him and includes 9(3) and 9(4).
By virtue of the above mentioned sections, ITC claimed is mere input tax of CGST and SGST and not credit availed through TRAN 1.
However the supplier of capital good did not charge me CGST/SGST in the VAT regime and thereby I haven't claimed any ITC as defined in Section 2(62).
So, am I liable to pay tax as per Section 18(6) read with rule 44?
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