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
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