Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

ITC FOR ASSETS

Gauri Shanker Lal Srivastav (218 Points)

22 June 2018

What happens if one starts using an asset for exempt goods also for taxable goods?

Reply
Follow
Share

1 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 22 June 2018

has to reverse ITC avail on capital goods on monthly basis the ITC attribute to exempted supply

Use following formula for same

1. Calculate monthly credit - ITC on capital ÷ 60, say C

2. Calculate ITC attributable to exempt supply -
C x Exempt Supply ÷ Total Supply for the month

3. Reverse the same for every month

4. Pay interest as well 😂

Check rule 43(c)