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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Income Tax Slab for F.Y. 2019-20 :- 

AGE :- BELOW 60 YEAR

UPTO 2,50,000/- NIL
250000/- TO 500000/- 5% 
500001/- TO 10,00,000/- 20% 
10,00,000/- TO 50,00,000/- 30%
50,00,000/- TO 1,00,00,000/- 30%  + 10% SURCHARGE OF INCOME TAX 
HEALTH AND EDUCATION CESS 4% OF INCOME TAX
REBATE 87A UPTO 5,00,000/- WHICH INCOME DOES NOT EXCEED 5,00,000/-  INCOME TAX 12500/- REBATE OR TAX AMOUNT UPTO 12500/- . 


GST UPDATES :-

CGST - CENTRAL GST
SGST  - STATE GST
UGST -UNINON TERIRITY

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)

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GST   WEBSITE

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INCOME TAX KNOWLEDGE 

INCOME TAX WEBSITE

INDIA GOVERNMENT WEBSITE

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ACCOUNTS UPDATES :-
THREE GOLDEN RULES
INCOME CREDIT, EXPENSES DEBIT
RECEIVER DEBIT, PAYEE CREDIT
 ASSET DEBIT, LIABILITY CREDIT




BUDGET UPDATES :- NEW TAX SLAB & IF YOU WANT TO TAX EXEMPTION IN TAX SALB OF LAST YEAR.