Ashish Neel asked 5 years ago
ITC Reversal for Capital Goods
ITC Reversal for Capital Goods
I am having two Proprietorship business registered on One GSTIN. One is Transport Services(Exempted) for e-way bill purpose and second one is Job Work Services(Taxable) providing to Automobile Companies. I have purchased Trucks for Transport Services in July 2018 and taken ITC of the same and used for set-offing gst liabilities of job work services.
am I eligible for the same or I have to reverse it?
there is 50% ITC remaining in my Credit Ledger. Can I reverse the same in one go?
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2 Answers
Advocate Akash Dixit answered 5 years ago
If Input tax claim on capital Goods and which is used in wholly Exempted Supply than ITC should be reverse with interest.
CA. SINGHI RAKESH answered 5 years ago
you have to reverse ITC in proportion to the exempt supply in one go for earlier period.
