I’m working in a manufacturing company. Recently we export second-hand machine which purchased pre-GST regime, whether its required to reverse ITC utilized at the time of purchase, if Yes then how much ITC to be reversed in such case. Can anyone provide GST rules on the above issue?

Asked on January 1, 2019 in Miscellaneous.
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Segment 18 (6) read with CGST Rules require reversal of credit or payment of tax on transaction value, where the provider has taken Input Tax Credits. The work input tax acknowledge has been characterized as the credit of input tax (CGST/SGST/IGST/UTGST/cess charged under GST Act). Cenvat Credit benefited in the pre GST routine can’t be said to fall inside the meaning of Input Tax Credits. Additionally, there is no explicit transitional arrangement requiring reversal of cenvat credit in the case of goods purchased in pre GST routine yet sold/disposed of in post GST routine.

when the products are sent out outside of India under this case of LUT, it falls inside meaning of ‘zero-rated supply’ of merchandise and accordingly isn’t liable to GST.

Based on above, we are of the view that there is no GST obligation on the fare of such capital merchandise.

Answered on January 2, 2019.
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