GST Tax Payable OR ITC Reversal On Sale of Fixed Assets/CG

Last updated: 28 May 2022

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This Excel file helps you calculate the Goods and Services Tax (GST) payable or the Input Tax Credit (ITC) reversal required when selling fixed assets or capital goods within five years of purchase. It guides you through determining the ITC reversal amount based on the period of holding and the output tax payable, ensuring accurate GST compliance. This tool is invaluable for businesses needing to reconcile their ITC claims with asset disposals.

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XLSX 14 KB 1 downloads GST

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Hi Friends, Whenever there is sale transaction of Fixed Assets/Capital Goods - GST Payable or ITC Reversal Whatever is Higher will Apply. Under CGST Act 2017 Section 18(6) & CGST Rule 2017 Rule 40(2) Whenever there is sale transaction of Fixed Assets/Capital Goods following HIGHER consideration of Tax Payable will be apply: 1. Actual GST Tax Payable on Sale of FA/CG (with Applicable GST Rates) 2. Identify FA/CG quarter wise usage, reduce 5% ITC quarter wise & than identify remaining amount of ITC 3. FA/CG cannot be sale before 5 years & if sale transaction happens than the said formula will apply Hence, I hereby attaching the example of FA/CG ITC Reversal or GST Payable whichever is Higher as excel calculator for your routine tax workings Hope it helps you Kindly leave your feedback The Author can be reached - Nilesh H Gajjar - Tax Practitioner nilesh.h.gajjar@gmail.com #xlsx

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Submitted by Nilesh Gajjar (Tax Pract.) · Posted 28 May 2022 · Other files by Nilesh Gajjar (Tax Pract.) · Report

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