Rule 43 of CGST: Determining and Reversing Input Tax Credit for Capital Goods in Mixed-Use and Construction Projects.

Rule 43 of the CGST Rules outlines the determination and reversal of Input Tax Credit (ITC) for capital goods used in both business and non-business activities, taxable and exempt supplies. The rule specifies how to calculate common credit 'Tc' for capital goods, detailing the treatment of input tax for goods used exclusively for exempt or non-business purposes, and those for taxable supplies. It includes a formula for apportioning common credit for exempt supplies, and mandates adjustments in output tax liability for ineligible credits. The rule also provides guidelines for final ITC computation in construction projects, addressing capital goods' useful life and credit allocation across multiple projects.

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