Reversal of ITC on Supply of Capital Assets under GST Regime

Reversal of ITC on Supply of Capital Assets under GST Regime :-

INPUT (ITC) TO BE REVERSED DUE TO ASSEST DISCARDED (WITHOUT CONSIDERATION) PRIOR TO 5 YEARS FROM DATE OF PURCHASE:-

ILLUSTRATION :- 

 

DATE OF PURCHASE  OF ASSETS–     11/08/2017
 

DATE OF DISCARDED OF ASSETS-      25/12/2021
 

INPUT (ITC)  TAKEN AT THE TIME OF PURCHASE OF ASSET  - 
 

3203 (CGST) 
3203 (SGST)  

F.Y.                                             USED LIFE OF ASSET
                                                            (IN QTRS.)  

2017-18 (DOP 11/08/2017)                  3 QTR.
2018-19                                                 4 QTR.
2019-20                                                 4 QTR.
2020-21                                                 4 QTR.
2021-22 (DOD 25/12/2021)                 3 QTR.
 

TOTAL QTR. USED OF ASSET     18 QTR.
 

ELIGIBLE ITC PER QTR.                                 @ 5%     
 

TOTAL ELIGIBLE ITC     18*100*5%         =     90%
 

BALANCE INPUT (ITC) TO BE REVERSE        10%
 

INPUT REVERSED 10% OF INPUT AVAILED    

3203*10%  = 320 (CGST)
3203*10%  = 320 (SGST)

INPUT TO BE REVERSE IN GSTR-3B IN RELATED MONTH  WE DISCARD IN MONTH IN DECEMBER-2021   

ITC REVERSE ON CAPITAL GOODS

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