dear sir
as per the provison, input credit is proportionately to be reversed if such common credit is used for taxable as wel as exempt goods.
anyone has working sheet for computation of reversal amount
moreover how to work out for input for capital goods ??
3 Replies
Jatin
(Accountant)
(3479 Points)
Replied 09 June 2018
Very good article available, visit clear tax website wi
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 June 2018
CALCULATION of Input Tax Credit Reversal when Capital Goods Used In supply of both exempted supply & taxable supply
1. Calculate Tc : total input tax credit on capital goods Eg. Machinery for Rs. 1lac & GST on it is 18% say 18000/- so Tc is 18000/-
2. Calculate Tm : monthly input credit on capital goods. Eg In GST capital goods life is deem as 5 yrs or 60 months, so Tm= 18000/60 ( which is 300)
3 Calculate Tr : means if having more then one capital goods say 2 then to calculate Tm for both the capital goods So Tr= Tm1 +Tm2
3. Calculate Te : how much input being to be reverse in exempted supply or how much input for capital goods attributed to exempted supply
In Case When 2 Capital goods:
Te = Tr1+Tr2 x exempted sale÷Total Turnover or Total sale
* Total sale means exempted + taxable
In Case 1 Capital Goods
Te = Tm x Exempted sale ÷ Total Sale
Now Reverse Te in Table 11(d) of GSTR 2, & in GSTR 3B ,. Under table 4
* Note : even if u hv sold that capital Goods say in 2 year , even then also u hv to reverse the input for remaining 3 years
1. Calculate Tc : total input tax credit on capital goods Eg. Machinery for Rs. 1lac & GST on it is 18% say 18000/- so Tc is 18000/-
2. Calculate Tm : monthly input credit on capital goods. Eg In GST capital goods life is deem as 5 yrs or 60 months, so Tm= 18000/60 ( which is 300)
3 Calculate Tr : means if having more then one capital goods say 2 then to calculate Tm for both the capital goods So Tr= Tm1 +Tm2
3. Calculate Te : how much input being to be reverse in exempted supply or how much input for capital goods attributed to exempted supply
In Case When 2 Capital goods:
Te = Tr1+Tr2 x exempted sale÷Total Turnover or Total sale
* Total sale means exempted + taxable
In Case 1 Capital Goods
Te = Tm x Exempted sale ÷ Total Sale
Now Reverse Te in Table 11(d) of GSTR 2, & in GSTR 3B ,. Under table 4
* Note : even if u hv sold that capital Goods say in 2 year , even then also u hv to reverse the input for remaining 3 years
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